They found that value added per U.S. worker increased during that period — 21 percent for the economy as a whole, and 44 percent in the "tradeable" sector, which is geek-speak for those businesses integrated into the global economy.
a) most rich economies have an extraordinary propensity to consume, b) our banks, till recently, fed this consumption with the frenzied provision of credit, c) we buy far more from the rest of the world than we sell to it, because our tradeable sector - especially in manufacturing - is too small.
Increasing earnings in innovation and other tradeable sectors raises spending in non-tradeables sectors like services, and thus increases jobs and wages there.
The answer is probably not, as moving a massive amount of economic resources from the tradeable to the non-tradeable sector (infrastructure and government spending on goods and services) will take time and cannot be done quickly.
In fact, wages increase in the local, non-tradeable sector.
A composition of economic activity increasingly biased towards construction, real state, and other non-tradeable sectors.
The net jobs being created in America are almost entirely in the non-tradeable sectors of the society -- retail services, public employees, health care, education etc.
Here's how Mr. Spence and Ms. Hlatshwayo put it: "The most educated, who work in the highly compensated jobs of the tradeable and nontradeable sectors, have high and rising incomes and interesting and challenging employment opportunities, domestically and abroad.
"This is classic Dutch disease, whereby the growth sectors are mining and non-tradeables … leading to external balance problems when the growth of the mining sector tails off," says Keith Jefferis, former deputy director of the Bank of Botswana.
But if wages continue to rise, those Brazilians working in the tradeable sector that is, those whose jobs could be done abroad will be priced out of the global jobs market.
Although China's service sector suffered badly from April to mid-June, when SARS was at its peak, "the much larger manufacturing and tradeable-goods economy did not feel the impact of SARS in any material way whatsoever," Mr. Roach said.
