De-industrialisation

Protection and subsidies push just the wrong way. | De-industrialisation causes problems in economies unable to absorb the workers released by manufacturing. | As manufacturing continues to shrink in an economy, overall growth will increasingly depend on boosting productivity in services. | Policy should therefore focus on removing obstacles (such as trade barriers and regulation), to such productivity growth, and creating a labour market in which workers can move freely from factory employment to services. | But those who would tackle this by subsidies or trade barriers are missing the point.