Manufacturing Jobs Have Nothing To Do With China

Donald Trump (and others) have been complaining that China has "stolen" all the manufacturing jobs from the United States. According to Trump, that's because we make "bad deals".

But the reality is that manufacturing output in the United States is at an all time high. We have never manufactured as many goods as we do today. What's not at an all time high is employment in manufacturing. Below is a chart showing the percentage of US employment in manufacturing.




This trend line is not a result of making "bad deals" with China. The downward trend is 50 years old. It predates the end of Bretton Woods. It predates the union-crushing, deregulating era of the late 1970s and early 1980s. It predates the era of Japanese dominance, the rise of the Asian tigers, and the recent surge in Chinese growth. What is driving this trend is technology. Manufacturers steadily improve manufacturing productivity, automating tasks that used to be done with labor.

This is not going to change no matter how many Yuge Deals you do. Trump is just another in a long line of demagogues who prey on the emotions of the economically ignorant.