Part 6/11:
Many believe that tariffs can revive American manufacturing industries that have declined over the decades. However, this overlooks how technological progress, automation, and productivity improvements have fundamentally transformed manufacturing.
Historical analogy: When President Clinton was approached with similar questions about restoring manufacturing, economist and Nobel laureate Paul Krugman explained that such efforts were unlikely to succeed. He compared the situation to agriculture in the 20th century, which saw a dramatic reduction in labor but a rise in output due to technological advances.