Posted on 09/03/2007 4:38:11 AM PDT by shrinkermd
The United States makes more manufactured goods today than at any time in history, as measured by the dollar value of production adjusted for inflation -- three times as much as in the mid-1950s, the supposed heyday of American industry. Between 1977 and 2005, the value of American manufacturing swelled from $1.3 trillion to an all-time record $4.5 trillion, according to the Bureau of Economic Analysis.
With less than 5 percent of the world's population, the United States is responsible for almost one-fourth of global manufacturing, a share that has changed little in decades. The United States is the largest manufacturing economy by far. Japan, the only serious rival for that title, has been losing ground. China has been growing but represents only about one-tenth of world manufacturing.
But if the big picture is brighter than many realize, American manufacturing is nevertheless undergoing fundamental change that is exerting enormous pressure on workers.
Imports are rising, now representing a third of all manufactured goods consumed in the country, up from 10 percent in the 1970s.
American exports are rising even faster than imports, but companies face intense price competition, with China, India, Brazil and dozens of other low-wage countries now part of a global marketplace for labor and materials. Manufacturers are redesigning production lines to make them more efficient, substituting machinery for people wherever possible.
So while American American manufacturing is not declining, manufacturing employment has been shrinking dramatically. After peaking in 1979 at 19 million workers, the American manufacturing workforce has since dropped to 14 million, the lowest number since 1950.
(Excerpt) Read more at washingtonpost.com ...
Does this mean we are all doomed?
If the Washington Post is saying it, yes we are doomed
OOPS! and I forgot to add that it’s Bushes fault!
OOPS! and I forgot to add that it’s Bushes fault!
Thanks for posting. Interesting.
Excellent article
Though not a work about unions
I remember growing up as a kid in the 1960s and 70s and there was one corner of the basement that had some boxes stacked up with stuff that my mother called "memorabilia." Just a bunch of old plates, glassware, newspaper clippings and other knick-knacks.
Today, the average house is completely saturated with stuff. I bet I could find at least five old coffee-makers in my basement alone. That's because we always end up getting the latest and greatest gadget while putting the older perfectly well running gadget down the basement "just in case."
I never have figured out what "just in case" means. Just in case of yard sale? Just in case it might be worth something on Ebay as an antique? One thing for sure, we'll never actually lug it back up to the kitchen and actually use it. That's because if the one we are using breaks, we'll just go out and buy a new one and put that one down basement to join the others.
Just in case.
Work = word
I'd like to see all the protectionists, China-haters, and anti-greedy corporation types comment on this.
The only thing that has declined in manufacturing is employment because people cost too much.
In fact, if you look at the 5 million decline in manufacturing employment, you can attribute almost all of it to unionized industries like automotive.
True.
The problem is we’re becoming slaves to our stuff...
I’m not too found of China...
But I don’t think they are “stealing” all the jobs.
We just have way better jobs.
And, the average “poor” person today is materially better off than the average “middle class” person in 1950.
And that's why there is the misperception that American manufacturing is on the decline.
NC ping
Note the source, and please tell me where all of the USA manufactured stuff is for sale at. Find one toy, small appliance clothing item or computer component that is manufactured domestically. They are playing with numbers.
This is the economics of specialization at work...
China has one very abundant product: cheap labor
America has a lot of manufacturing infrastructure and despite the sorry state of our government school system, still has a relatively highly educated workforce. We also have many great innovators in our country. We figure out how to do things and make things.
Now, one thing I learned in my economics studies is that if each company plays to its strengths, both countries benefit hugely. China is playing to its strength of cheap abundant labor and they are specializing in labor-intensive industries. The USA is innovating as we always have and developing new industries - a la the duckweed plant in NC mentioned in the article. Industries like the US auto makers have not been innovating technologically. They have not automated to their fullest potential and so they are losing out to foreign competitors big time. Hyundai has set up an assembly plant in Alabama that has a total staff of 38 workers! This is the future of manufacturing! Those 38 employees are surely highly educated and are turning out many many high quality cars. Another example would be Intel’s factory that has zero employees - it is completely automated!
Workers must see these trends develop and use them to their advantage. They need to either take initiative to further their education in their chosen industry or develop skills needed for a different industry that will be around for the remainder of their working days.
Or they could start their own business like I have done in the past.
And hugely better off than any medieval king.
Watch John Ratzenberger’s Made in America on the Travel Channel...you will find plenty that you didn’t even know existed...
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