|
|
|
|
|
|
by jcampbell1
4848 days ago
|
|
|
The author is indirectly describing what is known as "Dutch disease". When a country is rich in natural resources, smart and enterprising people specialize in learning to extract natural resources. This damages the technology sector because talent gravitates todward money in market economies. Also, the first paragraph of wikipedia's article on dutch disease is flawed. Dutch disease is used by economists to describe when a domestic comparative advantage crowds out another industry. It has nothing to do with manufacturing. The first paragraph incorrectly implies that it has something to do with the manufacturing sector. |
|
|
Because historically it's been the manufacturing and trades sectors that get crowded out; they are the industries most directly competing with mining for skills and equipment inputs.