Posted on 07/01/2005 7:27:38 AM PDT by Toddsterpatriot
--and is less than one percent of the labor force. When I was a kid I still used hear old timers complain about how important agriculture is and why the shift from agriculture to manufacturing was so awful. They used to say that food was the only thing that mattered because "you can't eat a machine". They'd disparage factory work as 'wage slavery' and predict the eminent collapse of the American republic.
Now we have to put up with the next generation of clowns complaining about the shift from manufacturing to services. No matter that wages are higher and that the country is stronger.
What you call "repackaging", everyone else considers manufacturing. True, a Chinese worker might make a medium-value item such as a tire, and a Mexican worker might make another medium-value item such as a seat. However, those items are then manufactured into a high-value manufactured item known as a "BMW" by American workers.
There are cost efficiencies in having lesser-skilled workers put together cheaper items. However, at the end of the day, American workers are the ones manufacturing the big-ticket item at the end of the manufacturing chain.
That is a good thing. Wasting the highly-trained, efficient American worker on textiles and other low-end manifacturing is not smart economic policy.
Due to the huge increase in farm efficiency, the average American family spends a far smaller percentage of its income on food than a century ago.
Similarly, due to the huge increase in manufacturing efficiency, the average family spends a far smaller percentage of its income on manufactured items than a century ago. That is one of the reasons why so many American families have two cars, several televisions, a computer etc. etc. And that is one of the reasons why we can afford to spend so much money on services.
Sorry, more good news!!!
They shoulda gone into brain surgery, right?
Ummmmnnnn.....
It's good news, in the sense that the expansion recorded by ISM REVERSES a 12-month-long decline in the Index.
It's not exactly unalloyed Good News, however: both New York and Chicago area manufacturing indexes dropped, significantly, yesterday. In addition, MZM's rate of growth has gone southeast for the last 12 months, and the Yield Curve continues to flatten. "Durable Goods" increased--until you take out aircraft orders (last month)--after which the category DECREASED by 2+%.
Finally, the Milwaukee Index showed an interesting little item: delivery time (from suppliers) DECREASED; which is not necessarily "good news."
All in all, the MZM number, combined with the continuing flattening of the Yield Curve, is important to watch.
FYI, Manufacturing Employment is still down 8+% and real wages took a small hit, again, last month.
So, as you noted, things are OK. But there are strange wiggles and burps out there.
That cheap dollar is finally kicking in.
Then again, how many of these jobs are automated??
The American worker is by far the worlds most productive. Japanese workers may work longer workdays, but Americans work smarter work days. As a result, international bidding on American man-hours has soared and the overwhelming economic pressure has lured millions of US workers out of their US factories and put them to work showing other countries how to run their factories.
IMHO this constant sarcasm panning the advancing American worker is not only wrong, it's simply mindless America-bashing.
You need to double check your numbers. There was not a 12 month long decline prior to June.
I think the dollar is at a 9 month high.
Still low though, overall. Makes our exports cheaper.
Probably not. However, rather than working in textiles, they might now be working in a BMW plant or a plant making computer chips.
What's a better product for a country to be manufacturing- Nike t-shirts or advanced microchips?
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Exports are nice, but they just aren't the big bugaboo everyone seems to want to make of it.
We had no growth in exports in the late '90's and industrial production grew. Then from '01 to '03 exports grew and industrial production was flat.-- the US is so huge that exports are not that big of a factor.
That and the fact that exports have more than doubled with NAFTA.
And higher real wages and 20,000,000 more jobs!! Makes you wonder what they're whining about.
HAPPY INDEPENDENCE DAY, EVERYONE!!! (Don't forget to fly Old Glory!!!)
Thanks for the ping, raybbr!
I seem to recall that making hamburgers is now considered manufacturing. So perhaps all we're really seeing is more burger flipping....
Meanwhile, the Chinese wax stronger.
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