“” “” Because of automation, the U.S. worker is now three times as productive as in 1980 and twice as productive as in 2000. It’s productivity gains, rather than outsourcing and imports, that explain most of our manufacturing job loss.”” “”
That’s a stick with more than two ends. Both outsourcing and automation contributes to a job loss but it does differently.
You shouldn’t listen to new Luddites who are against automation. In 18th century it took a British textile worker three months wage to afford decent shoes. Has weaving machinery Luddites hate so much ruined their industry? The answer is no. It increased productivity and the excess of workers went to other industries which seen similar growth based on the same principles.
In didn’t took months of work for the same worker to afford shoes in 1960s 150 years later not in spite of automation but due to it. Thanks to the automation they could afford homes and automobiles by that time.
Now guess why there is no British textile industry and no related jobs left?
Yes, its gone thanks to outsourcing and it is not automation which is to blame.
When you artificially raise both the cost of labor, and the cost to employ labor, you get a loss of demand for labor.