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  "title": "More cold water from Gregory Clark",
  "note": "Gregory Clark, who dumped cold water on the dreams of development economists and good-hearted people worldwide with A Farewell to Alms (see my blog posting from a year ago), is back with another pail of icy salt water. This time he throws it in the face of folks who think that an economic recovery will bring jobs and prosperity to America’s lowest skilled workers. See this op-editorial in the Washington Post.\n\n[Clark's book is much more interesting and completely argued. In the op-ed he leaves out one of his central points, which is that modern industrial processes are less tolerant of careless or incompetent workers than older processes. In a plant where a single mistake can result in the spoiling of $1 million of material or the death of another worker, quite a few Americans would not be welcome in that factory even at a wage of 1 penny per hour. Especially given government mandates of minimum wages and health care benefits, quite a few American workers fall into the same class as horses did in the early 20th century. Even a free horse wasn't productive enough to earn his cost of maintenance. Machines did not replace humans in the 20th century, as had been predicted by forward thinkers, but machines did replace horses. Coincidentally, the New York Times yesterday carried a story about Iraqi immigrants to the U.S. The fundamental problem seems to be that there is not a market-clearing wage at which American companies want to hire these folks and at which the Iraqis are able to sustain themselves.]\n",
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