Gordon R. Richards, National Association of Manufacturers told the Subcommittee on the Census Committee on Government Reform U.S. House of Representatives (The quality of GDP data, and the Bureau of Economic Analysis)
"The redefinition of computer output was a crucial factor in driving the manufacturing revival of the late 1990s. The manufacturing share of GDP grew during the late 1990s, and the main reason was the measured real increase in output of computers and peripherals. For instance, in 1989, the peak of the previous business cycle expansion, manufacturing accounted for 16.8 percent of GDP. In 1999, the peak of the current expansion, this share had risen to 17.2 percent. Without the quality imputations to the real value of computers, this increase in the manufacturing share would not have been measured."
I will defer to the experts but it does not take much googling to find that GDP and its components' computation changed throughout the 1990s
http://www.bea.doc.gov/bea/about/test-grr.pdf
Limbaugh, Tom Sullivan, et al. pointed to manufacturing being a decades old constant part of GDP and suggested all this declining jobs "sky is falling" stuff is BS. They were basing it upon an article written by some Cato guy, I think. Can't remember his name.
On increased production taking jobs. Without doubt computers have had their effect. Very good! However, Stephen Roach writes about "imported productivity." Googling will fetch his writings.
I am sickened by the politics of it all. It is encouraging though that after more than two years (the recovery began in Nov., 2001) the movers and shakers are timidly honest enough to talk about structural changes in the economy and abandon the lie of the classic recovery model.
Millions of Americans are paying the cost of changes brought on by "globalization," etc. For two years the Limbaughs and Tom Sullivans pushed the lie of the classic recovery and blamed the unemployed for unemployment.
Dem rats blast the President -- hoping and hoping the situation gets worse, both for the American workers and the American soldiers in the war to defend against radical Islam.
The Republicans say, "Jobs is jobs. Go sweep floors, Mr. Big Shot engineer. Your're making us look bad."
I loathe both parties. Time for a new party.
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AMEN!