I was listening to the "POTUS " (Politics of the United States) station on Sirius yesterday morning and heard the host, Tim Farley, repeat a common myth:  that the US is losing manufacturing capability.  I sent the following letter in response:

re:  Tim Farley, Labor Secretary Hilda Solis, and US Manufacturing

In his interview on Monday with Secretary of Labor Hilda Solis on "Morning Briefing", Tim Farley perpetuated a common myth:  he commented on the "eroding manufacturing base" that he claimed was occurring in the United States.  The truth is that over the past 30 years, manufacturing output — that is, the actual total worth of goods manufactured in the US — hasn't "eroded" at all... it has increased by almost 200%, even following the recent economic downturn.

What fools many observers is that the number of workers employed in manufacturing has decreased over the same period by almost 40%; however, while this might not appear to be good news, particularly to those communities hardest-hit by layoffs and plant closings in the Midwest, this phenomenon isn't the result of the commonly-blamed culprit of jobs being "shipped overseas".  Instead, fewer people are employed in the manufacturing sector in the United States to produce more goods because of technological innovation and productivity gains.  Much like the development of fiber optics and computers decreased the demand for phone operators, computers, software, and robotics have decreased the market demand for assembly line operators and other blue collar jobs.  In the meantime, job demand for programmers and other service-oriented workers has soared.

Modernization and globalization have produced dramatic gains in productivity.  No doubt this progress can be painful for individuals and families personally affected, just as the advent of the automobile and the tractor were painful for cartwrights and agricultural workers.  However, the ultimate result is a win for consumers:  more options, better prices, and a better standard of living.

Sincerely,
Dave Smith
Houston, TX