Wednesday, May 18, 2016

US #Manufacturing Has Been Getting Killed For Decades

News
A quick look at the message of the market reveals US manufacturing has been getting killed since 1945. Granted, advances in automation, computers, and economies of scale, the drivers of US productivity, have increased substantially over the decades, but clearly something else is going on. That something is socialism, the rising cost of government factored into the cost of US labor, has risen substantially since 1945.

Few inside the public sector are willing to address this trend. Reduce taxes and jobs will return. Tax reduction can't happen until the public's faith in socialism has been broken by failed promises.

Chart


Headline: The U.S. manufacturing sector is getting killed

Thanks to Steve Feinstein for bringing the article about American manufacturing by Michael J. Hicks at Ball State University to our attention, thereby providing an opportunity to debunk some claims made in Hicks's piece.

Hicks claims the following:

No matter how you measure it, 2015 was a record year for manufacturing production in the U.S. Even with the last few rocky few [sic] months, we are still at record production. There's no ambiguity on this. I think inflation-adjusted dollars are the best measure, but any available metric – nominal or real GDP, industrial production indexes, quality indexes – reveals the same trend. U.S. manufacturing production is booming; we're just doing it with far fewer workers.


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