April 19, 2012
Much of the debate around U.S. manufacturing is problematic because the core data on manufacturing output and productivity are flawed. The reality is:
- A large share of manufacturing jobs was lost in the last decade because the United States lost its competitive edge for manufacturing.
- The loss was unprecedented, and it continues to severely impact the overall U.S. economy.
- Regaining U.S. manufacturing competitiveness to the point where America runs a trade surplus in manufacturing products is critical to restoring U.S. economic vibrancy.
- Regaining manufacturing competitiveness will create millions of higher-than-average-wage manufacturing jobs and an even greater number of jobs from the multiplier effect in other sectors of the economy.
- The United States can restore manufacturing competitiveness and balance manufacturing goods trade within less than a decade if it adopts the right set of policies in what can be termed the “four T’s” (tax, trade, talent, and technology).