The Economy's Good News: The Upside of Downsizing
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Enduring the Churn: America's Real Source of Strength
Some may say that downsizing has "gone too far."20 There's no denying the upheaval caused by letting economic forces work. Yet we cannot ignore the much greater cost that would be imposed by forcing companies to maintain the status quo. To society, the valuable resource clearly is the worker, not an existing job. Efforts to preserve jobs may well succeed, but these policies will rob the economy of its vitality and deprive this generation and future ones of the progress that lifts living standards. Indeed, what makes the American economy so strong is our willingness to endure the churn and let it enrich our economy over and over again.
NOTE: Nothing written here should be construed as necessarily reflecting the views of the Federal Reserve Bank of Dallas or the National Center for Policy Analysis or as an attempt to aid or hinder the passage of any bill before Congress.