It has been said that America doesn't "make" anything any more. That we have lost our manufacturing base. Is this true? Consider the following:
Industrial Production Index (2007 = 100)
1920........ 4.1986
1930........ 5.4822
1940........ 9.7076
1950........17.0083
1960........21.9824
1970........37.0324
1980........51.0241
1990........60.9742
2000.......91.7437
2010.......92.5354 (mid year)
(Source Federal Reserve Statistical Release)
As you can see, even at the peak of a recession in 2010, we still produced more than 10 years earlier. What are people talking about when they say we don't make anything any more. They are reacting to the abundance of every day retail consumer products from China and other places. They feel that we would be better off if these things were made in the U.S. Would we be? Could anyone afford a TV made at U.S. wage rates? Is our standard of living improved with millions of workers on mind numbing assembly lines? The answer is clearly no.
Thursday, September 2, 2010
Subscribe to:
Posts (Atom)
