State News

What's the administration's specific aim in bailing out GM? I'll give you my theory later.

For now, though, some background. First and most broadly, it doesn't make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any manufactured goods from coming in from abroad -- something I don't recommend -- we'd still be losing manufacturing jobs. That's mainly because of technology.

When we think of manufacturing jobs, we tend to imagine old-time assembly lines populated by millions of blue-collar workers who had well-paying jobs with good benefits. But that picture no longer describes most manufacturing. I recently toured a U.S. factory containing two employees and 400 computerized robots. The two live people sat in front of computer screens and instructed the robots. In a few years this factory won't have a single employee on site, except for an occasional visiting technician who repairs and upgrades the robots.

Factory jobs are vanishing all over the world. Even China is losing them. The Chinese are doing more manufacturing than ever, but they're also becoming far more efficient at it. They've shuttered most of the old state-run factories. Their new factories are chock full of automated and computerized machines. As a result, they don't need as many manufacturing workers as before.

Economists at Alliance Capital Management took a look at employment trends in 20 large economies and found that between 1995 and 2002 -- before the asset bubble and subsequent bust -- 22 million manufacturing jobs disappeared. The U.S. wasn't even the biggest loser. We lost about 11 percent of our manufacturing jobs in that period, but the Japanese lost 16 percent of theirs. Even developing nations lost factory jobs: Brazil suffered a 20 percent decline, and China had a 15 percent drop.

What happened to manufacturing? In two words, higher productivity. As productivity rises, employment falls because fewer people are needed. In this, manufacturing is following the same trend as agriculture. A century ago, almost 30 percent of adult Americans worked on a farm. Nowadays, fewer than 5 percent do. That doesn't mean the U.S. failed at agriculture. Quite the opposite. American agriculture is a huge success story. America can generate far larger crops than a century ago with far fewer people. New technologies, more efficient machines, new methods of fertilizing, better systems of crop rotation, and efficiencies of large scale have all made farming much more productive.

Manufacturing is analogous. In America and elsewhere around the world, it's a success. Since 1995, even as manufacturing employment has dropped around the world, global industrial output has risen more than 30 percent.

More after the jump.

--Robert Reich

MORE...

"Late-term abortion doctor George Tiller was gunned down at his church in Kansas Sunday morning in a thoroughly evil, cold-blooded act of domestic terrorism. Yes, terrorism. Not 'extremism,'" - Michelle Malkin.

On Friday's Special Report with Bret Baier, FNC host Baier informed viewers that the Justice Department had dropped charges against New Black Panther members who engaged in blatant voter intimidation in Philadelphia last November. As previously documented by Newsbuster Noel Sheppard, last November Fox News ran a report by Rick Leventhal detailing the activity which was ignored by the mainstream media. On Friday's Special Report, Baier quoted a former 1960s civil rights lawyer: "The most blatant form of voter intimidation. They were positioned in a location that forced every voter to pass in close proximity to them. The weapon was openly displayed and brandished in plain sight of voters."

Below is a transcript of the report from the Friday, May 29, Special Report with Bret Baier on FNC, which aired during the show's "Political Grapevine" segment:

BRET BAIER: A lawsuit brought by the Bush administrationNew Black Panther Party has been dropped by the Obama Justice Department. The move comes despite an eye witness account of a You Tube video of the men seemingly attempting to scare away would-be voters on Election Day, an apparent violation of the 1965 Voting Rights Act. The civil complaint accused the men of coercion, making threats, intimidation, and hurling racial slurs while at a Philadelphia polling station on November 4. Prosecutors say one of the men brandished a night stick, which they called a deadly weapon.

A former 1960's civil rights lawyer said in an affidavit that it was, quote, "The most blatant form of voter intimidation. They were positioned in a location that forced every voter to pass in close proximity to them. The weapon was openly displayed and brandished in plain sight of voters." A Justice Department spokesman said officials obtained "an injunction that prohibits the defendant, who brandished the weapon, from doing so again. Claims were dismissed from the other defendants based on a careful assessment of the facts and the law."

There are plenty of instances of misleading and otherwise bad stats being used by anti-piracy groups, like the recent BSA numbers from Canada that were basically made up. Now, a group from the UK is saying that piracy costs that country's economy tens of billions of pounds. It makes the same mistake as plenty of other studies before it: counting every instance of piracy, or perhaps even just the availability of copyrighted material on file-sharing networks, as a lost sale. It's fallacious to assume that every single person that downloads a piece of content, or simply has access to it for free, would pay for it if the free version wasn't available. Furthermore, any study like this that says an entire economy is being harmed by X amount of money because of piracy is pretty much bogus. This money that's supposedly being lost because of piracy isn't being lost by the economy, as undoubtedly it's being spent elsewhere. It's not being flushed down the toilet or turned into ether, it's just not ending up in content companies' bank accounts.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

Permalink | Comments | Email This Story