Manufacturing is dying in America, and the middle class that was built on post-WWII GI bill education and manufacturing is going with it. Jobs move overseas to cheap labor markets thanks to trade deals that favor a powerful elite. Millions around the world are rising from extreme poverty at the price of the Western World’s middle class – which might look like a good tradeoff to aliens watching from space, but isn’t so good if you happen to be losing. We should all be sad and angry.
I’ve heard that a lot and I guess I believe it. Just look at the tags in my tee shirts – all manufactured overseas.
I also tend to think of the Christian Science Monitor as a reputable news source, so I read their recent article carefully.
The surprising truth about American manufacturing
“United States manufacturing output is at an all-time high, worth $2.2 trillion in 2015, up from $1.7 trillion in 2009. And while total employment has fallen by nearly a third since 1970, the jobs that remain are increasingly skilled.
“Across the country, factory owners are now grappling with a new challenge: Instead of having too many workers, as they did during the Great Recession, they may end up with too few…
“In western Michigan… unemployment here is low (around 3 percent)… For factory owners, it all adds up to stiff competition for workers – and upward pressure on wages.” CSM
The situation isn’t all rosy: “Employment in manufacturing has fallen from 17 million in 1970 to 12 million in 2015. The steepest declines came after 2001, when China gained entry to the World Trade Organization and ramped up exports… In areas exposed to foreign trade [like my tee shirts], every additional $1,000 of imports per worker meant a $550 annual drop in household income per working-age adult.” CSM
Despite job openings, lots of young workers don’t want to work in manufacturing. They watched their parents shoulder large amounts of overtime only to get laid off in the Great Recession, see the overall downward trend, and are being pushed into college instead of trades by parents, schools, and the government.
I checked Wikipedia, which seems like a decent place to get an overview.
“In 1990, services surpassed manufacturing as the largest contributor to overall private industry production, and then the finance, insurance and real estate sector surpassed manufacturing in 1991. Since the beginning of the current economic downturn in 2007, only computer and electronic products, aerospace, and transportation have seen increasing production levels…
“A total of 3.2 million – one in six U.S. factory jobs – have disappeared since the start of 2000. The manufacturing sector of the U.S. economy has experienced substantial job losses over the past several years.” Wikipedia