A Manufacturing Industry To Be Proud Of

by: Natasha Chart

Wed Oct 28, 2009 at 06:00


The American manufacturing industry and its employees are constantly told that they need to be better competitors in the global market, that they must increase the value they add. How are they doing on that?

Something that jumps out from data about the share of global manufacturing had by the United States, China and five other industrialized nations, is that the US is about even with China. As of 2008 and according to UN figures, China's manufacturing accounts for 17.3 percent of world output in dollars (though this number is slightly inflated), while the US' share is 17.7 percent. All else is rarely equal, so this is about as close as you'll get in the real world.

From a Bureau of Labor Statistics report described here, "By the end of 2006, China's manufacturing employment had increased once again to 112.63 million, nearly eight times the level of manufacturing employment in the United States (14.16 million)." The numbers have surely changed since then, but probably not by an order of magnitude.

Those figures could imply many things, but what they seem immediately to suggest is that American workers are extremely productive. They can produce both a high volume and high value of goods, and they have done so without getting a real raise since 1974.

Yet US manufacturing workers face higher unemployment rates than the national average, and often have to accept lower paying work when their plants close down, which should be no surprise. At the advice of the finance industry, wages and benefits have been driven down, policy makers were encouraged not to worry about the decline of the industrial base, and the whole thing was papered over with a massive consumer credit bubble.

Natasha Chart :: A Manufacturing Industry To Be Proud Of
Though it seems to me that any 14 million people who can give any 112 million other people a run for their money are valuable and they should have good jobs. They've proven their worth. Preserving the capacity to usefully employ them is just good sense and a worthwhile hedge against supply chain interruptions.  

In any war or serious national security emergency, our extended supply chain might become a bigger deal than it's comfortable to think about. For example, as John Markoff wrote this week in the New York Times, the "Pentagon now manufactures in secure facilities run by American companies only about 2 percent of the more than $3.5 billion of integrated circuits bought annually for use in military gear." (Alternate link.) He says there's concern in the military and intelligence communities about Trojan horses being placed in the circuits, raising the possibility of failures in times of crisis.

That could sound paranoid, but the US itself has used such Trojan horses against other countries, either to tamper with military hardware or steal information. In other words, it's been thought of, done and printed in the paper for everyone to read about a long time since.

There are things that a country should ideally make for itself.  

Next are the pollution issues. Many of the developing nations whose lower labor casts initially attract US companies have very low pollution standards.

Links to this photograph series entitled, "Pollution in China", has been making their horrifying rounds lately. The 40 images document not only the signs on the landscape, but the damage to China's people; the adults and children with cancer, the birth defects, disabilities, festering sores, faces and bodies permanently caked with coal dust.

Pollution controls may be so poor even on newly constructed or expanded facilities that they pose blatant and immediate threats to local residents. The region of Sichuan still recovering from last year's deadly quake is now being poisoned by an expanded aluminum production facility, its permanent rain of white dust is killing crops and irritating the skin of its workers. In central China's Henan province, more lead smelters have been found releasing so much pollution that nearby children had excessive blood levels of lead, 178 of them requiring hospitalization. Steel manufacturing in China comprises a third of world steel production, but half of all steel industry CO2 pollution.

At least part of China's environmental destruction is due to poor enforcement, with multinational and Chinese firms openly flouting pollution disclosure requirements instituted in 2008.

So as China's global share of pollution increases and shipping pollution becomes a bigger issues, both the House and Senate support for border tariffs is the sensible thing to do if your concern is either cutting emissions or protecting US jobs. Even if it may irritate trading partners.

American workers are capable and productive. They're an asset to their country and to a world that's looking to the United States to take responsibility for our share of global pollution.

Congressional leaders who told us all it was an imperative to save the banking industry, which caused our current recession, should remember the US workers struggling to survive it when they craft a solution to our climate challenges.

Cross-posted from OurFuture.org. Chris and I are headed to DC today to make the Building The New Economy conference this Thursday, hosted by The Institute for America's Future and the Alliance for American Manufacturing. Free registration is available if you RSVP online, so stop by if you're in the area!

Read more from the series | Go to the conference page


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Can we "Sticky" this post? (4.00 / 2)
Because the loss of labor-centric manufacturing is as central to our civilization's viability as would be the permanent cessation of rain to an agrarian society.

In other words, it is terminal.


qualms (4.00 / 3)
i'm always (meaning always) inclined to support the interests of working class people in the united states against the elites of the united states (or elsewhere) and i'm even inclined to support a progressive movement that promotes ideas like protection because it has many spillover benefits for people in other countries, regardless of whether its industrial policy reflects that.  

That said, a genuine balance has to be struck among the interests of american (and other rich country) working people and the people in other countries.  The reality is that there is an enormous disaprity of power not just between the military and government of the United States and other rich countries on the one hand and poorer countries on the other hand, but even on a social level, that disparity exists.  American, European, Japanese, and other per capita incomes and even median incomes are far higher both in real terms and nominal terms than billions of people in the rest of the world (e.g. something like 1000:1 in some cases and that's setting aside intangibel factors), and there is no mechanism to address this glaring inequality or remembrace of the history and current policies that have induced it - largely with the tacit acceptance of the American and other OECD populations.  This is fundamentally wrong because it is based on a legal distinction on the basis of your country of citizenship of what rights and what level of well being you can expect and expect to be entitled to - i.e. accident of birth.  A good way to look at it is - what would Obama be doing if he HAD been born in Kenya?  Certainly not being in a position to order military strikes in Pakistan and Afghanistan.

So I would prefer for working people in the United States (not progressives - working people, and their elected representatives if necessary) to be making decisions for American interests rather than the elites.  but this is not the choice posed by this post.

In response to some criticisms the suggestions I'm articulating encounter, in my experience:

*arguing against solely taking into account the interests of American workers rather than generating dialogue and a substantive balance of interests that reflects the interests of people in the Global South is not an endorsement of sweatshops or free trade or a race to the bottom.  This is a sleight of hand in which the real question is missed.

*American lives and well being are not worth more or less than other peoples.  They are worth the same, and any other standard is regressive, not progressive, even though it's obviously understandable why American progessives woudl care more abotu American workers and Indian progressives would care more about Indian workers and Chinese progressives would care more abotu Chiense workers, etc.  But Americans make up 300 million people out of over 6 billion people (0.5%) and the level of resourcse they consume and have consumed on a planet that is being depleted is disproproportionate and unsustainable I believe it would be fair to ask that Americans be the ones respionsible to make up for this.  However, again, there is no political mechanism to generate this (yet) - because there is not genuine transnational solidarity movement at a broad level which includes Americans willing to make a substantive commitment.

*You can't have enormous disparities in global income and simulatenously maintain a progressive standpoint without taking this into account on a deep level - debt relief is a first step but not nearly enough.  Allowing other countries to make their own choices is the crucial aspect of this - policy autonomy - so legal mandates in trade agreements are an instrument - but they're onyl a genuine instrument of international solidarity if they come from a model of international solidarity that reflects the itnerests and views of the people on the ground (not the elites) in other countries in the world.

*Transnational solidarity on a genuine and as equal a level as possible is vital to this process.  You simply can't have OECD NGOs and Institutions or the elites of the Global South - let alone military machines and finace capitalists like the American government - speaking on behalf of the majority of the people in the world.

*Progressive arguments can NOT be posed primariyl in terms of pitting the intersts of American manufacturers and workers on the one hand against the itnersts of Global South manufacturerss and workers on the other hand.  This is exactly what ends up undermining both groups - again, und erstanding that tactically, this might be a reasonable thing to do, but substantively, long term, and in an integrated strategy, it has no place for the reasons laid out above.

I believe this is the basis for an okay - not perfect - starting point of these issues.


the link to the words 'photograph series entitled, "Pollution in China"' is (0.00 / 0)
http://www.chinahush.com/2009/...

you have a ' after the href that screws up the link

ps. thanks for the diary!


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