Making More with Less (manufacturing up but jobs are down)

American Enterprise Institute ^ | October 1, 2015 | Mark J. Perry

[FreedomNotSafety]

The ability of the US manufacturing sector to produce increasing amounts of output with fewer and fewer workers should be recognized as a sign of economic strength and vitality, not economic weakness. Thanks to advances in technology, the factory floor today is one with modern, advanced, state-of-the-art equipment that requires fewer employees, but with greater skills and training than in the past. The trend in US manufacturing over the last 30 years – more and more output with fewer and fewer workers – is exactly like the transformation that revolutionized US farming over the last 100 years or more. With fewer than 2% of America’s workers, we produce more agricultural output today in the US than when much greater numbers and much higher shares of the nation’s employees were working on farms. And yet when have you ever heard anybody say that “America just doesn’t grow anything anymore”? The fact that we frequently hear that “America just doesn’t manufacture or produce anything anymore” isn’t consistent with the reality that US factories produce more output today than at any time in US history.

[dfwgator]

"Just one word, 'Plastics.'"

[central_va]

The 55,000 factories closed. The product the once made being made somewhere. So you are saying this whole offshoring thingy is a hoax? What stupid argument.

Agriculture is different and complex and cant be discussed in short platitudes that the free Traitors™ are known for.

[Organic Panic]

Even if Apple or Dell wanted to move their factories here they couldn’t. The feds wouldn’t allow it. There would be shakedowns from labor unions.

[DoodleDawg]

Just recite the governmental alphabet soup of agencies. laws, and taxes combined with another alphabet for all of the handouts and you will see that employing people in this country is very hard to do.

Did you breeze right past the part of the article that talked about state of the art equipment, greater productivity, and higher levels of automation? Are you blaming government agencies for that?

[absalom01]

I find the recent uptick in folks cheerleading for trade protectionism depressing.

[dp0622]

we should have a one good story out of 6 policy :)

one can get disheartened.

the black guy beating up the KKK guy at the Trump rally was a good one :)

[wally_bert]

Some of them can go work at a certain mid-west based electronics/computer recycling and resale corporation. Illegals and that outfit belong together.

They don’t believe in lean, try anorexic. It doesn’t matter how many drop, quit, wind up in the ER due to premature organ failure to that outfit.

[Thibodeaux]

for the record, there are more people at fast food establishments employed in sales than production

the way to improve the number of working people is to grow the economy. those that whine about bringing jobs home are never going to see those jobs return. If there are new jobs it will be the result of new business and new products.

it is possible that some might be repatriated but it will be with new manufacturing technology. We will likely never manufacture paint brushes again. we will likely not make cotton yarn and T shirts again on the scale we once did. we will likely never make steel on the level we did. .

the world, especially the young people’s world is a very competitive place. Whining about what was is losing proposition. Only donald Trump has a grasp of not only what is but what must be

[cba123]

Well China is running a trade surplus of approximately 500 billion last year, which is (still) constantly growing quite quickly in fact, yet even with such a huge imbalance, it is still required that every company investing in China have a majority (Chinese) partner, who actually owns the company.

I don’t know about you, but that sure seems to me to be a hugely unfair bit of trade news, and sure needs to be addressed.

If needed, with trade protectionism, because what we have now is complete and total sell-out of American interests.

Completely so.

[FreedomNotSafety]

I read it. It makes my point. US companies will go to great lengths and expense to not hire a US worker. You really think french fry robots make sense outside of government regulations?

[FreedomNotSafety]

That’s the point of the article. Manufacturing job loss is happening inspire of ever increasing industrial output. Even if the fabled factories of old come back to the US they will return with considerably less US jobs.

Still wait for that sales tax on imports plan you think is salvation or is a 20% sales tax on durable goods all you got? Not to make it to sophisticated.

[FreedomNotSafety]

inspire = inspire, wait=waiting, to=too
Geez it’s hard to argue when you can’t spell.

[FreedomNotSafety]

The decline in ag jobs due to automation is the same as in manufacturing. Farms are agricultural factories. Both face world wide choice competion. Check and see how protecting sugar against foreign competion has harmed the US confectionary business.

[DoodleDawg]

It makes my point. US companies will go to great lengths and expense to not hire a US worker.

They will if it reduces their costs.

You really think french fry robots make sense outside of government regulations?

What is the purpose behind any automation? Reducing costs.

[khelus]

That doesn't make sense. Silly sophistry.

How much better would American manufacturing be wig the 55,000 factories closed since 2001 had stayed open?

The charts in the article use Real GDP as measured by the BEA.

Here are two interesting facts to be considered when looking at the charts:

01. Beginning in the mid 80's inflation has been creatively enhanced to under report which in turn means real output if over reported.

The Blue equals Inlfation as measured without enhancements:



02. Per BEA definition :

"..... Gross output can also be measured as the sum of an industry's value added and intermediate inputs. Value added (i.e. GDP) consists of compensation of employees, taxes on production and imports, less subsidies, and gross operating surplus. Intermediate inputs refer to the value of both foreign and domestically produced goods and services - See more at: http://www.bea.gov/faq/index.cfm?faq_id=1034#sthash.WQbF5A04.dpuf..."