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Who killed US manufacturing? The US once dominated the manufacturing world and the blame for its decline falls far and wide. Was it China? Mexico? Globalisation? Robots? Republicans? Democrats?
investmentmonitor ^ | 12 May, 2021 | Ruth Strachan and Sebastian Shehadi

Posted on 04/09/2025 10:41:59 AM PDT by daniel1212

Coming out of the Second World War, the US was the king of production,” says William B Bonvillian, a lecturer at Massachusetts Institute of Technology (MIT) and an expert in US innovation policy....

by 1945, more steel was produced in the state of Pennsylvania alone than in Germany and Japan combined....

By the turn of the millennium, the US’s global domination in mass-scale industrial production, technology and efficiency was lost. Long-standing issues culminated between 2000 and 2010, when the US lost one-third of its manufacturing jobs....

Between 2000 and 2010, nearly six million jobs in US manufacturing were lost, with the sectors most prone to globalisation displacement, such as textiles and furniture, taking the biggest hit, according to research by Bonvillian and MIT’s Peter L Singer....

The fixed capital investment of manufacturing (plant, equipment, information technology, and so on) actually declined in the 2000s – for the first time since data collection began in 1947...

Meanwhile, US manufacturing output grew only 0.5% per year between 2000 and 2007, and during the global financial crisis of 2007–09 fell by a huge 10.3%...

In 2015, the US ran a trade deficit of $832bn in manufactured goods,..

“Most of the jobs that were lost were in the lower end of production, as opposed to higher skilled jobs,” says Bonvillian. “In other words, one of the main routes into the American middle class just got cut off....

Trump’s politics came right out of that. He was the first US politician to.. speak directly to the anxieties of what the American working class had gone...

coming out of the Second World War, the whole focus for the US innovation system was on early-stage R&D, not manufacturing. “Production was the last thing we worried about, since we were the king. Nobody was remotely close to us,” adds Bonvillian...

Meanwhile, post-war Germany and Japan were rapidly rebuilding their industrial bases to counter mass unemployment. This meant their innovation systems were focused on manufacturing,..

“This imbalance explains why, for many decades now, the US has been innovating new technologies that get built elsewhere,...says Bonvillian. “More recently, we have been trying to pick up the Fraunhofer model [universities and industry working together]. But guess what? China did the exact same thing...

it is becoming increasingly common for US companies to move from ‘innovate in the US and produce abroad’ to ‘do both abroad’....If Apple, the company that was dominating stock markets and largely considered to be heralding the dawning of a new era in innovation, was outsourcing its manufacturing, surely it was on to something?

The feasibility of reshoring factory jobs aside, Trump was in fact reacting to a very real issue...

it wasn’t a sudden burst of robots that took most jobs away, it was other causes, and when you boil it down, it really was the rise of the Chinese economy,” contends Bonvillian...

Not only has China charged ahead of the US in terms of the production process, but it has also done so increasingly with innovation in the past decade....

For all of Trump’s bluster, he had little success in bringing factories home...

Another deeply rooted issue for US manufacturing has been the growing stigma and prejudice about its value. The result: a gaping skills gap...

“Why would a parent want their children to work in a factory where jobs were being lost all the time?” asks Bonvillian.

Meanwhile, the white-collar college dream only grew stronger, with the preference largely being for young people to go into what was considered to be the more academic fields of medicine, law, accounting and services.....

the lack of desire to see young people go into manufacturing jobs adds to a lack of viable educational avenues into the sector, which is exacerbated by the lack of large-scale adoption of innovative technology...

During Clinton’s presidency, the internet and the wider use of computers changed almost every aspect of American life..the increased use of information technology exacerbated the globalisation of manufacturing...

Obama did see some success in creating manufacturing jobs, but he felt short of his one million target and instead manufacturing jobs rose by 590,000 in his second term..

However, since the onset of the manufacturing decline under Reagan, every single Republican president has seen a decrease in average annual manufacturing employment...

A closer look at the crime scene shows that US manufacturing was not killed, but it has endured grievous bodily harm. The American factory has lost its edge. Reclaiming this must be one of the country’s economic and geopolitical priorities.


TOPICS: Agriculture; Business/Economy; Food; History
KEYWORDS: amazon; iwbg; laborcompetition; regulations; shopping; unions
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To: central_va

“The union boogie man died 30 years ago.”
Two words “Government unions”.
Sure most all union industries are dead or off shore, but we can’t kill the government or off shore it.
The biggest threat to your health, safety, and welfare is
the government!
Run by UNION employees.


61 posted on 04/09/2025 12:10:07 PM PDT by rellic (No such thing as a moderate Moslem or Democrat )
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To: daniel1212

Unions. We talk about the deindustrialization of the U.S. But mostly it is the unionized industries that jumped ship.

Over Taxation. All corporate taxes are indirect taxes on consumers, but pols think camouflaging them as “corporate” taxes lets them dodge responsibility. Unfortunately, among idiot voters, it does.

Overreach by the eco warriors. No, I do not want to return to the smokestack America of the 1950’s, when breathing the air in NYC was said to be the equivalent of smoking two packs a day and Big Steel execs in Pittsburg were known to change shirts in the middle of the day if they had an important meeting coming up. I’ve been in China when the air pollution was so bad that you could go a week without seeing the sun visibility from the window of a high rise hotel was limited to a couple of blocks. But the Gaia worshipers have overreached.


62 posted on 04/09/2025 12:15:04 PM PDT by sphinx
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To: Jaysin

Clinton killed it....


and replaced it with what was called a “service economy”.


63 posted on 04/09/2025 12:15:50 PM PDT by PIF (They came for me and mine ... now its your turn)
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To: sphinx
Thanks for posting that. It is really well written study on myopia and reckless ignorance.
64 posted on 04/09/2025 12:18:53 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: daniel1212
It wasn't killed. It was stolen and taken elsewhere.
65 posted on 04/09/2025 12:19:37 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Pollard
Every one of the UAW jobs spawns off many, many more service jobs in the community. When the factory closes then the whole community suffers and goes into a depression. You Free Traitors™ never discuss that do you?
66 posted on 04/09/2025 12:24:49 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: PIF

Actually it was Reagan who said the U.S.was moving to a service economy.

At which time I said “are we going to make a living pressing each other’s pants?”.


67 posted on 04/09/2025 12:43:03 PM PDT by hoosierham (Freedom isnt free)
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To: Olog-hai
If anything you said is true, then Red China should have gone under decades ago.

How does that follow? Red China is in a completely different situation from the U.S. because they have what amounts to slave labor - or at least very low wage labor powerless to do anything about it. That was not us.

Also, I said a lot of things, but you think they were all false? So we didn't have a competitive advantage in the wake of WW2.

68 posted on 04/09/2025 12:43:58 PM PDT by Bruce Campbells Chin ( )
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To: hoosierham

Reagan was wrong about a lot of stuff.


69 posted on 04/09/2025 12:57:53 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: central_va


70 posted on 04/09/2025 12:58:05 PM PDT by Pollard (Zone 6b)
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To: Pollard
Yep, nothing that a 25% tariff can't take care of.

Note: The last picture of Paco is guy that works on cars he will never be able to buy.

How much do Ford Assembly plant workers make in Mexico?

AI: Ford assembly plant workers in Mexico typically earn between $3.50 and $16 per hour, depending on their role and skill level. Entry-level manufacturing jobs start at the lower end of the scale, while skilled workers may earn closer to the higher end. These wages are significantly lower than those of UAW workers in the U.S., reflecting differences in labor costs and economic conditions.

71 posted on 04/09/2025 1:02:54 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Solson
Good summary! Also, a free market cannot exist in societies without a strong moral foundation. Freedom infers a moral foundation and is distinct and different from anarchy. Most are very confused about that nowadays.

And increasingly it seems, many here reject faith and making moral/social values an issue.

72 posted on 04/09/2025 1:04:09 PM PDT by daniel1212 (Turn 2 the Lord Jesus who saves damned+destitute sinners on His acct, believe, b baptized+follow HIM)
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To: ridesthemiles

Unions were a huge part of it.

Reminds me of an old bkue collar factory buddy of mine who loved his union. Well his union ultimately caused his company to close his facility and merge with another facility further away. Then the company closed that merged factory and bought a non union facility in flyover country. He was out of a job!


73 posted on 04/09/2025 1:11:32 PM PDT by Jaysin (Trump can't be beat, unless the democrats cheat)
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To: daniel1212

Harvard Business School killed it back in the 70’s with its flawed concept of a “Service Economy”


74 posted on 04/09/2025 1:11:39 PM PDT by Zathras
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To: central_va

Many of those UAW workers don’t hang around after retirement. They head to places like Florida. I met one there. Dumb as a box of rocks but could tell you all about wormy metal. (sheet metal with defects that look like worms or worm trails) Paco is probably smarter and like me, probably drives a 20 year old Car.


75 posted on 04/09/2025 1:19:32 PM PDT by Pollard (Zone 6b)
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To: Bruce Campbells Chin

During the campaign, President Trump opposed the sale of US Steel as an outright purchase; however, now he is working on a deal whereby they do NOT buy it out, but invest in the company short of majority ownership, so it is still an American company.

https://www.cbsnews.com/pittsburgh/news/us-steel-new-review-trump/


76 posted on 04/09/2025 1:20:50 PM PDT by gloryblaze
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To: Pollard

You must be one of those “citizens of the world” libertarian fools.


77 posted on 04/09/2025 1:21:26 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Haddit
In 2005, THE EPOCH TIMES acquired a secret speech given by Defense Minister Chi Haotian to high-level Communist Party Cadres sometime before his retirement in 2003.

Quite the secret speech, thanks, but it needs a source, maybe https://jrnyquist.blog/2019/09/11/the-secret-speech-of-general-chi-haotian/

Only by using special means to “clean up” America will we be able to lead the Chinese people there. This is the only choice left for us. This is not a matter of whether we are willing to do it or not.
Yet Australia offers vast living space, albeit environmental challenges.

Rightfully theirs’: China targets Australia as ‘the next Taiwan’ Some of China’s up-and-coming Communist Youth are asserting the land Down Under is rightfully theirs. - https://www.news.com.au/world/asia/rightfully-theirs-china-targets-australia-as-the-next-taiwan/news-story/5ed2ac9e8b4044a8a11ed82a482cd010

The year is 2049. China is exploding with light and sound as its citizens dutifully celebrate 100 years of the Communist State. The world around them is unrecognisable. Australian National University academics Natasha Kassam and Darren Lim have peered into a metaphorical crystal ball to map out Australia’s likely future under a new world order. It’s a world where the United States comes a distant second in the superpower stakes. China’s economy is triple its size. Its military is vastly superior in size and modernity. 2049 is a world where Beijing calls the shots. 2049 is a world where Australia stands isolated and alone. - https://www.news.com.au/technology/innovation/military/chinas-terrifying-master-plan-for-australia-anu-warns/news-story/65748f16afe71aa9365dda3d62772889
There has been rapid development of modern biological technology, and new bio-weapons have been invented one after another.
However, such are hard to localize, and no risk retaliation, thus the exponential tech advances by China to dominate the West into submission is the master plan.

Just after the liberation, our yellow land supported nearly 500 million people, while today the official figure of the population is more than 1.3 billion. This yellow land has reached the limit of its capacity.
China's population is estimated to be around 1.408 billion as of 2024, making it the second most populous country in the world, following India.
78 posted on 04/09/2025 1:29:54 PM PDT by daniel1212 (Turn 2 the Lord Jesus who saves damned+destitute sinners on His acct, believe, b baptized+follow HIM)
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To: central_va

Naa, I’d prefer zero trade with Mexico. Let them design and build their own stuff. I hate that every rebuilt alternator and starter is rebuilt in MX. We used to have something called Auto Electric Service businesses. Every town/city of decent size had one. Drop your alternator/starter off in the morning and pick it up in the afternoon.


79 posted on 04/09/2025 1:30:06 PM PDT by Pollard (Zone 6b)
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To: daniel1212
The F&&KING DEMONRATS in order to make millions of former citizens SERFS to the self-appointed ruling class".


80 posted on 04/09/2025 1:32:33 PM PDT by Dick Bachert (=)
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