Firms in declining industries with high lay-off rates are subsidised by other, more successful firms.
As the Big Tobacco has proven for decades, companies in declining industries can make excellent investments under the right conditions.
They are often touted as a means of helping workers in specific, declining industries and so limiting political pressure for protectionism.
Ultimately, money goes to bad welfare, declining industries and outdated technologies rather than areas that can lead to the advancement and economic growth and widespread prosperity.
Developed countries that are quick to abandon declining industries and move upmarket into new industries and services will fare best as the emerging economies come of age.
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Without these cross-subsidies, all firms would have fewer incentives to make temporary lay-offs and firms in declining industries would have more reason to cut wages before jobs.
The map of qualifying areas, which are supposed to be struggling to deal with the consequences of declining traditional industries, is also being scaled down at the behest of Brussels.
So if inflation is zero, real wages cannot easily fall in declining regions or industries, and unemployment will rise.
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They have no growth opportunities or their industries are declining, or whatever the issue may be.
By some estimates, two-thirds of American manufacturing industries are experiencing stable or declining prices.
Slaughter has found a statistically significant relationship between declining unionization and increasing foreign investment across industries in the U.S. Firm-level analysis by Bruce Fallick of the Federal Reserve Board and our colleague Kevin Hassett also finds a negative relationship between unionization and investment.
But both countries really want to build their own defence industries, not to subsidise those of a declining empire with an uncertain temper.
Entertainment industries, such as the motion picture industry listed above and other amusement and recreation-related industries such as golf courses, bowling alleys, and art galleries are still declining in revenue or seeing very slow growth (less than 1%) this year.
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The government is taking measures to stabilize growth by pushing for more investment projects, reducing tax burdens and allowing private sector investment in strategic industries as China tries moving away from being a low-cost manufacturing hub dependent on the ever-declining growth of the developed world.
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