We hear all the time, "Our manufacturing jobs are going to China!" This implies that when we lose a manufacturing job, China gains one; that our loss is their gain.
In reality, from 1995-2002, we have lost 2 million manufacturing jobs. In that same period, China has lost 15 million manufacturing jobs. Where did they go? Mars?
They went to...other jobs.
People talk about the decline of US manufacturing, but we should be celebrating the RISE of the information age. 100 years ago, people worked in steel mills. 50 years ago, people worked in factories. Today, offices.
Think of a company like Google. They have 25,000 employees. What do they manufacture? Are their jobs worth any less? By whose standard?
These changes in the economy happen. In 1900, 90% of Americans were farmers. Today it's 2.6%. Would you say we're worse off as a nation? Where did all of those farming jobs go? They went to...other jobs.
This is the result of increased productivity and technology, not free trade.
This is a global phenomenon. Since 1970, manufacturing output as a share of GDP in Australia has dropped from 21% to 9%, Brazil 25% to 13%, Canada 21% to 11%, Germany 35% to 19%, Japan 35% to 20%, America 23% to 12%.
Also, let's keep some perspective of how much we manufacture in America. We make about twice as much as China (Even though they have 4 times the population), and we make more than Germany, UK, Italy, France, Canada and Korea combined. And we make more than we've ever made before in American history.
Just the top 10 American manufacturing companies had sales last year higher than the entire GDP of Germany. The top 500 companies had sales more than the entire GDP of Germany.
CLICK HERE for a list of the top 500 American manufacturing companies. I've heard of maybe 30 of them, but they are out there!
There is a big difference between "we are losing manufacturing jobs" and "we don't make anything in America anymore"
*A huge thank you to professor Mark Perry for his excellent research. I am indebted to his brilliance and continually steal his work in an effort to spread the word of free markets and free people. Mark, I can't say thank you enough. Please keep up the great work!
