The percentage of the working population employed in manufacturing peaked between 30% and 40% (by some estimates) in the middle of the 20th century, it is about 10% now.
Many of our drugs, parts for weapons, EVs, solar and wind equipment, and more are made in China. Some of our American furniture and much of our clothing are made in China. Our R&D is in China because China demands company secrets at the cost of doing business in a country with slaves, poorly paid employees, and a very large workforce.
Shutting down mines, refineries, and factories to go overseas was a big factor often downplayed. They will tell you we’re really productive, more than ever, but the difference is we manufacture far more advanced technology. Professors at Oxford say manufacturing has declined because we are more productive.
Regulations and unfortunate union restrictions in some fields greatly restrict ingenuity and invention. That’s obvious, but often ignored.
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Discourse says the decline is mostly about manufacturing employment.
We not only send our manufacturing abroad but also import foreigners to give them jobs instead of Americans, which keeps wages down.
No matter how you look at it, we are de-industrializing, and it’s killing the middle class.
The top ten manufacturing countries:
- China – 31.6% Global Manufacturing Output
- United States – 15.9% Global Manufacturing Output
- Japan – 6.5% Global Manufacturing Output
- Germany – 4.8% Global Manufacturing Output
- India – 2.9% Global Manufacturing Output
- South Korea – 2.7% Global Manufacturing Output
- Russia – 1.8% Global Manufacturing Output
- Italy – 1.8% Global Manufacturing Output
- Mexico – 1.7% Global Manufacturing Output
- France – 1.6% Global Manufacturing Output
According to the Joint Economic Committee Democrats, big corporations’ decision to invest in offshore manufacturing instead of domestic manufacturing contributed to supply chain disruptions during the pandemic. The US has lost over a quarter of manufacturing jobs since 2000, and production of critical inputs like semiconductors has increasingly moved overseas. The transformation of American manufacturing has reduced job opportunities for working people, especially those without college degrees.
A University of Chicago study found that US tariffs may increase US manufacturing output, but better-educated people will still get manufacturing jobs.
The Bureau of Labor Statistics concludes:
In the 40 years since manufacturing employment peaked, the industry has struggled to regain the prominence it once had. Notable job losses occurred in manufacturing durable goods, especially fabricated metals, machinery, and computer and electrical products. Within nondurable goods manufacturing, apparel and textile industries suffered dramatic job losses, while food manufacturing was the only component industry to add jobs.
Although there were more recessions (seven) during the 40 years prior to peak employment compared with the number (five) after the peak, manufacturing employment failed to fully recover from any of the cyclical losses after June 1979, resulting in a 34-percent net loss over the 40 years following the peak.
