Thursday, July 14, 2011

Does America Make anything anymore?

One of the worries in America is the idea that we can no longer feed ourselves, cloth ourselves, or make things for ourselves. This is typically the fear when people are debating that America is becoming a service economy and no longer a manufacturing economy that makes anything. Lets keep in mind that over a hundred years ago, most families individually fed themselves and clothed themselves when everyone had a farm and most everyone sewed their own clothes. But today we do not have anxiety over the fact that most people have never farmed much of anything and very few people have ever clothed themselves one outfit much less all their clothes. We would not complain that our lives are worse today than then! But yet when America as a whole shifts jobs overseas, we all the sudden fear that we are headed down a path to destruction. Aside from the fact that that in itself is ridiculous... even those who disagree might be surprised to find out that their facts are wrong to begin with:

America makes more "stuff" than anyone today! According to a U.N study (and we know the U.N hates us, so trust me if this article makes us look good you know its the truth) American manufacturing output in 2009 was 2.15 trillion dollars (in 2005 dollars) compared to China's 1.48 trillion dollars. Yes! America manufactured more than China, the place everyone fears is taking our jobs. In fact America accounted for 20 percent of the entire world's manufacturing output. That is just one percent below the 1990 amount of 21%! Yes your math is correct, in a 20 year period of time, America's manufacturing as a percentage of the world's manufacturing, only dropped one percent.

In 2009, we manufactured more than Japan, Germany, Britain, and Italy combined. And we keep increasing our manufacturing! You say what? How can this be from everything I have heard? American manufacturing today has more than doubled since 1970.

It is true that we have lost millions of American manufacturing jobs. But this is not because all those jobs are moving overseas. This is because we have become so much more productive! Technology today allows the American worker to produce far more than the American worker of decades ago. Many decades ago young people could dream about working in the factory as opposed to farming jobs which were dropping off due to this same increase in productivity levels in agriculture. Today young people can dream about becoming doctors, nurses, lawyers, mechanics, teachers, architects, engineers, or many other jobs due to technological improvements in manufacturing.

Many speak of how everything they buy is "made in China"! That is often true. This is because China specializes in producing toys, shoes, sporting equipment and other low-tech, labor-intensive jobs. These products do not require the high tech and sophisticated factories of America.

In fact a large amount of "stuff" is made in the United States. Of course this is not usually the cheap inexpensive items you find on the shelf of your local wal-mart or target. America specializes in making things like: planes, air-conditioners, automobiles, pharmaceuticals, semiconductors, and more. These are not on your weekly shopping list. Nor is this "stuff" you pick up off the shelf and can turn over and read where it was made.

The fact is, the cheap items we buy on the shelf of our stores should and are made in cheap labor countries. America prospers when we free up labor to do the high tech jobs by allowing other nations do the low-tech jobs. Are some workers hurt for a time in America? Absolutely. The farmer had a tough time making changes years ago when many of them lost their jobs. So did the blacksmiths and buggy makers when the automobile replaced horse and buggy. But was America worse off? No! Today the fighter jet maker, mechanic, doctor, nurse, engineer, lawyer, teacher, and more are replacing the factory worker. But as it was true a hundred years ago, we are better for it today!

*Much of this comes from author Jeff Jacoby

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