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Saving American Manufacturing by William R. Killingsworth

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CHAPTER 8

Findings, a History of Warnings, and Corrective Policy Actions

Observations and Findings

It has been claimed by some that U.S. manufacturing is doing fine and that the loss of employment is the result of rapid growth in productivity. For example, “manufacturing employment has fallen (since 2000) because of productivity growth, not a decline in output” (Morrison and Labonte 2008). In Chapter 6, however, the exact opposite was shown for a significant number of manufacturing industries—output and value of shipments have declined and led to reductions in employment. If a company is not making the products, it does not need the workers. In what might be termed the farming analogy, manufacturing is simply following the path of agriculture ...

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