Structural Costs of Manufacturing in The United States

Friday, October 21, 2011

 

In the summer of 2008, on the heels of the greatest financial crisis since the Great Depression, the U.S. economy stumbled badly, eventually contracting more than 5 percent from its peak. Manufacturing, for almost a century the engine that has driven the American economy, fared much worse—contracting more than 20 percent from peak to trough. Such a collapse made recovery all the more difficult for the economy at large because manufacturing—while less than 12 percent of GDP—remains one of the most influential economic sectors.
 
  • No other sector stimulates more direct and indirect economic activity.
  • No other sector invests more in research, development, and innovation.
  • No other sector comes close to providing manufacturing’s level of exports.
  • No other sector can match the average total compensation of its workers.
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