Monday, March 2, 2015

Manufacturing In The US - Not Happening Anymore

Socialist Emperor Pinocchio Veto Obama frequently says that manufacturing in the US is rebounding because of his Socialist Schemes and Economic Policies.   Sadly, it is just not true.   Manufacturing's golden years in the US was during the 1970's when employment in this sector hit nearly 20 million people.  It was about 20% of the labor force at the time.  From then until the year 2000 that number dropped by 2 million as manufacturing jobs left the country.

By 2010, the manufacturing labor force fell to just 9% of the labor force.  And though there has been some growth in the manufacturing sector, with a small number of American companies opening factories in the US, the trend for manufacturing jobs in the US leaving the country, or being eliminated altogether by automation, continues.  GM may be alive; but it has far fewer employees in the US than 30 years ago. 

Manufacturing jobs in the US are dependent on four factors; reasonably priced labor, cheap energy, common sense environmental regulations and a corporate tax code that is competitive.   On all counts, the US is a loser.  Unions push up the total cost of compensation and benefits well beyond what is common in China, Mexico and other countries.  While the US could be totally energy independent, bringing down the cost of energy, Obamanistas will not allow it.  The EPA Gestapo continues to kill jobs in the US by imposing Executive Order Regulations that make it impossible to manufacture in the US.   Finally, the US corporate 35% federal and additional state income taxes, that often push pushes the corporate income tax rate above 40%, is just not competitive.   

Until all of these factors are addressed to make the US more competitive, we are not likely to see meaningful growth in manufacturing jobs.   Cards talk and numbers don't lie.  It is what it is.  This is one of the reasons that Middle Class incomes continue to fall.   

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