Manufacturing

How to Create 5.8 Million Jobs Pronto - Stop Currency Manipulation

Want to know how to create up to 5.8 million jobs in three years?  End currency manipulation.  So says a new study released from the Economic Policy Institute.  If currency manipulation was stopped, the U.S. trade deficit would shrink by up to $500 billion in three years, annual GDP would increase up to $720 billion, the federal budget deficit would be reduced by $100 billion each year and 40% of the new jobs created would be in manufacturing.

America's Outsourcers to be Reclassified as Manufacturers

Don't like the trade deficit, low GDP and the public outrage over the offshore outsourcing?  Change the accounting method to make it go away!  Such is the agenda of government statisticians it appears.  How they are going to incorporate statistical lies into national accounts is shocking.  Production location no longer matters, the thing that will count is ownership of the final product.

Offshoring from Sea to Shining Sea

The year 1979 may very well have been the year when the middle-class in America had first began it's long decent into oblivion.  According to a U.S. Bureau of Labor Statistics report, manufacturing in the U.S. peaked in 1979 when we had over 19.6 million manufacturing jobs in a labor force of 104.6 million. In 1979 manufacturing was 21.6% of all jobs. Now manufacturing is only 9.9% of jobs in America.

Friday Movie Night - Frontline: Two American Families

We fill our lives with media.  Day in and day out the screens and voices spin a tall fictional tale of Americans with good jobs, houses, cars, educational opportunities and money.  Frontline brings home the real America, the one we don't want to face.  Gone is the American Dream, replaced with foreclosures, food stamps and work that doesn't pay enough to even make the most modest rent.  The new America is a wasteland of broken dreams, broken promises and broken people working themselves into the ground and still not even getting by.

Manufacturing Matters

On Manufacturing and Innovation

Manufacturing was once widely recognized as the outstanding strength of America and the basis of its prosperity, but manufacturing also has a more recent history of being almost a pariah.  This newer view equated computer chips with potato chips, asserted that manufacturing is better left to others, and suggested that the nation is actually fortunate to be losing manufacturing and aiming to replace it with design, research, and services.

The American Economy On Purgatory Mountain

CBS 60 Minutes profiled one town near Purgatory mountain, Asheboro, North Carolina to show what's really wrong with the U.S. economy. It's not taxes, small government or big government, or even the deficit. The real problem are jobs going offshore, companies treating workers as disposable and the never ending race to the bottom on wages, global labor arbitrage.

 

As Our Economy is Outsourced to China the Obama Administration Once Again Does Nothing

Once again the U.S. Treasury and President Obama have refused to label China a currency manipulator, this time by delaying their report on exchange rates until after the election. The excuses abound, with the claim the Treasury Department must assess progress via a G-20 meeting, scheduled conveniently in November, to oh gee, the administration doesn't want to start a trade war.

When in Doubt, Spin It Out - The Spin and Lies of Manufacturing

The Obama administration, with much fanfare, announced a WTO complaint filed against China on auto parts.

The Obama Administration is committed to protecting the rights of nearly 800,000 American workers in our $350 billion auto and auto parts manufacturing sector.

Export subsidies are prohibited under WTO rules because they are unfair and severely distort international trade. China expressly agreed to eliminate all export subsidies when it joined the WTO in 2001. China benefits from international trade rules and must in turn live up to its international obligations.

While this action is long overdue, the realty is this administration has been complicit with China, refusing to label them a currency manipulator. Additionally the Obama administration has passed even more bad trade deals and is working on a mega bad trade agreement, the TPP.

While Chinese auto part imports have surged 25% in the last two years, so has the overall manufacturing trade deficit. Below is the percent change from a year ago in the manufactured goods trade deficit. This trade deficit has increased 14% from one year ago and 26.3% from two years ago.

manufactured goods per chg 1yr

Trade With China Has Cost the U.S. 2.7 Million Jobs

So says the Economic Policy Institute in an updated study. Over the last decade, from 2001 to 2011, the United States has lost a whopping 2.7 million jobs to China alone and this estimate is conservative. The China PNTR trade agreement was signed by President Clinton on October 10th, 2000 and China entered the WTO in 2001.

The more than 2.7 million jobs lost or displaced in all sectors include 662,100 jobs from 2008 to 2011 alone—even though imports from China and the rest of the world plunged in 2009.

Below is EPI's map showing China unfair trade's job losses as a percentage of total state employment. These are not just a few minor localized pockets of jobs. We're talking significant payroll percentages per state being lost just due to China trade.

china job loss epi

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