title: big pharma targets profits in rare diseases
text: is deindustrialization a natural phenomenon of developed economies increasing real revenues affect peoples lifestyle choices jörg guido hülsmann  misesorg   
  let me first state my position and then add a few arguments to back it up 
  economic growth typically entails a reallocation of labor away from industrial production but it does not all by itself lead to falling industrial output the decline of industrial production in the us and france in the past thirty years is to some extent due to capital exports but especially to government interventionism in the form of mushrooming labor business and financial regulations education policies social security funding and taxation this decline cannot be stopped through more interventions even if they are designed with the good intention to reindustrialize the country 
  now let me offer a few considerations in support of these contentions 
  the reallocation of labor in a growing economy results most notably from capital accumulation and from changing preferences of the workingage population further investments and extensions of the existing structure of production make it necessary to spend more time devising new methods preparing industrial activity coordinating and monitoring supply chains lowquality bluecollar labor diminishes whereas there is some increase in highquality bluecollars but especially an increase in whitecollars working in and around the supply chains 
  increasing real revenues affect peoples lifestyle choices rather than laboring long hours that provide essentially a monetary reward they increasingly prefer enjoyable activities that provide immediate psychological and emotional rewards thus the blossoming of artistic intellectual and scientific activities in developed countries at the expense of traditional industrial pursuits 
  as a natural consequence of economic growth therefore industrial production declines relative to what it could be if it attracted even more people but this does neither imply a shrinking physical industrial output nor does it imply shrinking industrial revenues capital accumulation and technological progress make it possible that industry thrives even when less people have industrial employment germany provides an example 
  in the past thirty years western capitalists have invested large amounts of capital in formerly communist countries of the east and far east this reallocation of capital though beneficial from the overall point of view of the world economy has been detrimental in the shortrun to the industrial development of those western countries where the capital would otherwise have been used 
  but capital investments in countries such as france and the us have declined even more as a result of mushrooming government interventions welfare checks diminish the incentive to accept lowpaying and nongratifying industrial jobs massive subsidies for secondary and higher education artificially prolong schooling reduce the supply of qualified manual labor and create an artificial bias among the workingage population for scientific intellectual and artistic activities panoply of regulations have on the one hand increased the costs of doing business and on the other hand stimulated rentseeking and manifold forms of evasion and regulatory arbitrage today they are feeding entire armies of lawyers accountants auditors and financial advisors all at the expense of ordinary business 
  these tendencies cannot be stopped through socalled reindustrialization policies which boil down to even more government spending premised on the spurious notion that irresponsible and often also inexperienced politicians know best how to use the available scarce resources such policies have utterly failed in the past airbus included and will fail in the future genuine reindustrialization requires more oxygen for industry it requires nothing less than a rollback of the artificial obstacles for industrial development that government interventions have created in past generations