Attention Economy


Thursday, October 6, 2016

The Strange and Misguided Obsession with Manufacturing

Why Are Politicians So Obsessed with Manufacturing? By BINYAMIN APPELBAUM

Related:
WHY WE PINE FOR MANUFACTURING by Gary Sernovitz
Sernovitz notes:
“Such emotional, political, and even existential attachment to manufacturing is strange, however. Manufacturing employs less than nine per cent of America’s workers, and other American industries are flourishing, here and abroad. Ask a Chinese amusement-park owner competing against the new Shanghai Disney Resort, a French taxi driver protesting Uber’s incursions into Paris, a Saudi prince fighting for market share against Texas shale, or an Indian scientist dreaming of Harvard, and they will tell you a story of American entertainment, technology, energy, agribusiness, aerospace, military, and research in ascendancy. Indeed, since the global financial crisis, the entire U.S. economy, as slow-growing as it is, has been the envy of the developed world. But here in the U.S., we seem to ignore these other sectors in our constant cultural bemoaning of the decline of manufacturing. Manufacturing is like the Bible’s prodigal son—the wayward child that earns his father’s enthusiastic embrace even as the good child, seemingly unrecognized, dutifully succeeds.”


Who Needs Factories Anyway? By Michael Schuman
“Contrary to popular belief, the “loss” of manufacturing jobs in the U.S. hasn’t dealt that big of a blow to overall employment. According to the U.S. Bureau of Labor Statistics, the number of workers employed in manufacturing has declined by 5.3 million over the past 30 years. That may sound like a lot, until you realize that there are 151 million people employed in the U.S. at the moment. Even if those 5.3 million positions were lost today, instead of over three decades, it would affect only 3.5 percent of American workers. Meanwhile, the U.S. economy has done fairly well at creating other jobs. The number of Americans employed in the private service sector has increased by 43 million over the same 30-year time period.”


Manufacturing sector employment has been declining worldwide:
“Manufacturing jobs are on the decline in factories around the world.
“The observation is uncontroversial,” said Joseph Stiglitz, the Nobel-winning economist at Columbia University. “Global employment in manufacturing is going down because productivity increases are exceeding increases in demand for manufactured products by a significant amount.””

Premature Deindustrialization:
http://vivekjayakumar.blogspot.com/2015/11/africa-and-premature-deindustrialization.html