RE: Re: Re: Question about "dutch disease"

["Devine, James" <jdevine@xxxxxxx>]

On Sunday, February 24, 2002 at 20:40:53 (-0800) Eugene Coyle writes:
>Why wouldn't the cheaper natural resource, as an input to the
productive
>process, lower the cost of manufactured goods and make them MORE
>competitive with other nations?

Bill Lear writes:
Exactly my question.  As I understand it, the US has benefited very
much from having cheap natural resources, which it has (had?) used
primarily to fuel its industrialization.

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One obvious thing that makes Holland different from the US is that Holland
would be exporting most of the oil it gets. The US has had a very large
internal market for quite awhile.

(BTW, I've never heard of Holland finding oil. Am I simply an ignorant
schmuck (don't all say "yes" until you hear the alternative), or is it some
other natuaral resource?)

Jim Devine