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Deindustrialization |
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Deindustrialization A situation in which an economy begins producing more services than goods. An analyst may say that deindustrialization is occurring when decreases in manufacturing are accompanied by increases in consulting companies. This can be beneficial to some sectors; indeed, some investors look for evidence of deindustrialization to know what industries are likely to be profitable. However, deindustrialization can be detrimental to some workers and regions. For example, as the United States has deindustrialized, the city of Detroit, which is home to many automakers, has lost approximately half of its population, and consistently maintains a high unemployment rate relative to the rest of the country.
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Once growth became both the means and end of our deindustrializing economy, and as the quantification of the net effect on growth of various human actions became the closest approximation of passion an economist's heart can muster, it was only a matter of time before profligacy became civic virtue. By contrast, the blacks who populated America's deindustrializing ghettos in the 1960s remained outside the political, cultural and educational mainstream "even though they [knew] the language and culture of the United States. [8] Notwithstanding the possibility that these surveys may underestimate demand for land reform, the economic and political crisis engulfing the country from the mid-1990s onwards was primarily the result of the deindustrializing effects of World Bank/International Monetary Fund (IMF) structural adjustment policies, combined with the absence of a competitive electoral system. |
deindustrializing |
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