As many manufacturing industries have declined and as much American manufacturing has become vulnerable to foreign competition, numerous groups have suggested that programs to intervene in specific manufacturing sectors could help. Proponents focus on aid to telecommunications, aerospace, information technology, and high-definition television, where an edge in new technology may be key to the industries' success, but they also touch on aid to declining industries. Opponents of trade restrictions often argue that policies should facilitate adjustment in industries injured by trade. Other groups call for a technological “revolution” in manufacturing to restore international competitiveness through programs to facilitate adjustment and to speed the transition to new kinds of manufacturing. Others, concerned about massive job losses in depressed manufacturing communities, have called for improving the welfare of workers and communities.
Structural Transformation to Manufacturing and Services: What Role for Trade?
