Attention Economy


Sunday, January 15, 2017

Is America Still an Attractive Destination for FDI?

A timely piece from The Economist:
Populism, economic concentration and regulation are some of the reasons foreign bosses are souring on the land of the free”


The US has the highest liability cost amongst advanced economies:
According to an US Chamber - Institute for Legal Reform study:
“U.S. liability costs are four times higher than those of the least costly European countries in our study – Belgium, the Netherlands and Portugal.”


Related:
Worker Quality and the US Manufacturing Sector - An insightful piece from Reuters:
“James L. Brown tried to hire a dozen workers for his metal foundry here. Half of them flunked the drug test. Those results are typical, says the president of Bremen Castings Inc, a family-owned employer of 350 workers who make parts for trucks and other equipment. Drug problems are one factor contributing to a labor shortage that delayed filling orders earlier this year. "We’ve become a recruiting company,” Brown said of the relentless struggle to maintain a strong workforce.
Bremen Castings illustrates the central tension in U.S. manufacturing: Plant managers complain of a talent shortage, while workers see too few acceptable jobs.”

The Problem of Low-Skilled Men in Advanced Economies
The Economist has an excellent essay on a massive economic and social problem in advanced economies
“Technology and trade mean that rich countries have less use than they once did for workers who mainly offer muscle. A mechanical digger can replace dozens of men with spades; a Chinese steelworker is cheaper than an American. Men still dominate risky occupations such as roofer and taxi-driver, and jobs that require long stints away from home, such as trucker and oil-rig worker. And, other things being equal, dirty, dangerous and inconvenient jobs pay better than safe, clean ones. But the real money is in brain work, and here many men are lagging behind. Women outnumber them on university campuses in every region bar South Asia and sub-Saharan Africa. In the OECD men earn only 42% of degrees. Teenage boys in rich countries are 50% more likely than girls to flunk all three basic subjects in school: maths, reading and science.”