As long as this country has been around there have always been opportunistic politicians willing to take advantage of unemployed citizens for political gain. Wedge issues may come and go but this one is constant, regardless of the political party in power – “We’re losing our manufacturing base!” But are we?
Americans make more “stuff’’ than any other nation on earth, and by a wide margin. According to the United Nations’ comprehensive database of international economic data, America’s manufacturing output in 2009 (expressed in constant 2005 dollars) was $2.15 trillion. That surpassed China’s output of $1.48 trillion by nearly 46 percent. China’s industries may be booming, but the United States still accounted for 20 percent of the world’s manufacturing output in 2009 — only a hair below its 1990 share of 21 percent.
“The decline, demise, and death of America’s manufacturing sector has been greatly exaggerated,’’ says economist Mark Perry, a visiting scholar at the American Enterprise Institute in Washington. “America still makes a ton of stuff, and we make more of it now than ever before in history.’’ In fact, Americans manufactured more goods in 2009 than the Japanese, Germans, British, and Italians — combined.
American manufacturing output hits a new high almost every year. US industries are powerhouses of production: Measured in constant dollars, America’s manufacturing output today is more than double what it was in the early 1970s.
It’s true that fewer Americans work in factories. It’s also true that fewer Americans work on farms. In both cases it’s because we’ve become much more efficient. In 1960 the average U.S. farmer grew enough to feed 26 people. Today he feeds 155 people. It may be hard to pick up a plastic toy and not see “Made in China” stamped on it. But who manufactures a Boeing 777?
A vast amount of “stuff’’ is still made in the USA, albeit not the inexpensive consumer goods that fill the shelves in Target or Walgreens. American factories make fighter jets and air conditioners, automobiles and pharmaceuticals, industrial lathes and semiconductors. Not the sort of things on your weekly shopping list? Maybe not. But that doesn’t change economic reality. They may have “clos[ed] down the textile mill across the railroad tracks.’’ But America’s manufacturing glory is far from a thing of the past.
I expect politicians will continue to stir up populist sentiment by claiming we’re “shipping jobs overseas”. The best thing they can do for the American worker is to negotiate equitable free trade agreements with other nations, then just get the hell out of the way and let American ingenuity and efficiency do the real work.
It’s not just union jobs. 30 Years ago, every job at my, and most other IT companies, from janitors, to secretaries, to assembly line workers, to call center personnel, to geeky development engineers, and more, were held by full time, non-union employees. All product development and a large majority of manufacturing was done here. Had IT outfits stayed with that… Read more »
It’s true that fewer Americans work in factories. It’s also true that fewer Americans work on farms. In both cases it’s because we’ve become much more efficient. In 1960 the average U.S. farmer grew enough to feed 26 people. Today he feeds 155 people. It may be hard to pick up a plastic toy and not see “Made in China”… Read more »
#7 Tedtam They exist only to elect liberals who feed their machine Back in the 70’s I went to Portland, Ore to be the west coast construction manager for the major engineering/construct firm I worked for (at the time we were #5 worldwide and # 1 in the paper mill industry). I was the company rep for the local division… Read more »
It is not just union jobs though the have been disproportionately effected. There is no industry untouched by the technological revolution of the late 20th century and no nation has embraced it as much the USA.
Farming, ranching, oil & gas exploration, chemical refining, residential construction, automotive repair, etc. – all typically non-union sectors have been radically transformed.
#7 TT: Unions are the offspring of demons and pond scum I beg to differ with you Your Highness; pond scum serves a useful purpose as it, being plant matter, adds oxygen to the pond and some fish actually eat it not to mention that it provides cover for the young-uns. Demons are there to torment and tempt into sin;… Read more »
Drats. I posted the above on the wrong thread. Please pretend it was on the other one.
/no, I’ve not been in my stash.
One can not underestimate the power of free association enabled by modern technology.
Despots, dictators, and foreign supporters of “nation building” fear an informed and free populace more so than bombs or invasions.
Hubby worked at a family friend’s construction company a few summers during his college years to make enough money to continue his college education. He was stalked, literally, by the union bosses. He resisted, explaining that he was only going to be there for a few months, that he was a poor college student, etc., etc. They wouldn’t let up… Read more »
By the time I finally get around to reading the article, you Mega Left Brain types beat me to the punch. The jobs that were lost are UNION JOBS. The unions (along with scum-bag lawyers – redundant I realize) are the source of many of the woes of modern society today. It is the unions and the scum-bag lefty lawyers… Read more »
The economist quoted in Jacoby’s column is the highly respected Mark Perry, of the University of Michigan, who publishes a very popular economics blog called Carpe Diem. I go there several times a week. American manufacturing is a frequent subject at the blog and here are 221,000 Google links to Mark Perry’s voluminous posts about US production. Whatever the whiners… Read more »
El Gordo brings up a good point. Almost all the plants I mentioned in #3 are located in the South, in right-to-work states. The UAW has failed miserably in trying to unionize them. The workers make good money with good benefits AND they aren’t extorted by corrupt union bosses.
#1 The numbers are what they are. Their points would only be valid if the numbers are invalid. I’ve seen no one offer any proof. Look at all the foreign car makers that have built plants in the US over the last 25 years. Mercedes Benz, BMW, Toyota, Hyundai, Nissan, KIA, Honda, Volkswagen, Mazda, Mitsubishi, and Subaru all have manufacturing… Read more »
As usual, they are leaving out a couple of key words when they make these statements. The jobs shed overseas are union jobs – lower wage jobs, and in the case of the steel industry, jobs running automated plants created overseas when the unions refused to allow domestic steel production modernization. Eventually, maybe someone will get around to reading the… Read more »
From reading the comments, not everyone believes the article. Are their points valid or are they just refusing to face facts?
Just wondering.
It’s not just union jobs. 30 Years ago, every job at my, and most other IT companies, from janitors, to secretaries, to assembly line workers, to call center personnel, to geeky development engineers, and more, were held by full time, non-union employees. All product development and a large majority of manufacturing was done here. Had IT outfits stayed with that… Read more »
It’s true that fewer Americans work in factories. It’s also true that fewer Americans work on farms. In both cases it’s because we’ve become much more efficient. In 1960 the average U.S. farmer grew enough to feed 26 people. Today he feeds 155 people. It may be hard to pick up a plastic toy and not see “Made in China”… Read more »
#7 Tedtam They exist only to elect liberals who feed their machine Back in the 70’s I went to Portland, Ore to be the west coast construction manager for the major engineering/construct firm I worked for (at the time we were #5 worldwide and # 1 in the paper mill industry). I was the company rep for the local division… Read more »
It is not just union jobs though the have been disproportionately effected. There is no industry untouched by the technological revolution of the late 20th century and no nation has embraced it as much the USA.
Farming, ranching, oil & gas exploration, chemical refining, residential construction, automotive repair, etc. – all typically non-union sectors have been radically transformed.
#7 TT: Unions are the offspring of demons and pond scum I beg to differ with you Your Highness; pond scum serves a useful purpose as it, being plant matter, adds oxygen to the pond and some fish actually eat it not to mention that it provides cover for the young-uns. Demons are there to torment and tempt into sin;… Read more »
Drats. I posted the above on the wrong thread. Please pretend it was on the other one.
/no, I’ve not been in my stash.
One can not underestimate the power of free association enabled by modern technology.
Despots, dictators, and foreign supporters of “nation building” fear an informed and free populace more so than bombs or invasions.
Hubby worked at a family friend’s construction company a few summers during his college years to make enough money to continue his college education. He was stalked, literally, by the union bosses. He resisted, explaining that he was only going to be there for a few months, that he was a poor college student, etc., etc. They wouldn’t let up… Read more »
By the time I finally get around to reading the article, you Mega Left Brain types beat me to the punch. The jobs that were lost are UNION JOBS. The unions (along with scum-bag lawyers – redundant I realize) are the source of many of the woes of modern society today. It is the unions and the scum-bag lefty lawyers… Read more »
The economist quoted in Jacoby’s column is the highly respected Mark Perry, of the University of Michigan, who publishes a very popular economics blog called Carpe Diem. I go there several times a week. American manufacturing is a frequent subject at the blog and here are 221,000 Google links to Mark Perry’s voluminous posts about US production. Whatever the whiners… Read more »
El Gordo brings up a good point. Almost all the plants I mentioned in #3 are located in the South, in right-to-work states. The UAW has failed miserably in trying to unionize them. The workers make good money with good benefits AND they aren’t extorted by corrupt union bosses.
#1 The numbers are what they are. Their points would only be valid if the numbers are invalid. I’ve seen no one offer any proof. Look at all the foreign car makers that have built plants in the US over the last 25 years. Mercedes Benz, BMW, Toyota, Hyundai, Nissan, KIA, Honda, Volkswagen, Mazda, Mitsubishi, and Subaru all have manufacturing… Read more »
As usual, they are leaving out a couple of key words when they make these statements. The jobs shed overseas are union jobs – lower wage jobs, and in the case of the steel industry, jobs running automated plants created overseas when the unions refused to allow domestic steel production modernization. Eventually, maybe someone will get around to reading the… Read more »
From reading the comments, not everyone believes the article. Are their points valid or are they just refusing to face facts?
Just wondering.