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by Spooky23
3356 days ago
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Actually, it's not. Those manufacturing output numbers are both tricky and misleading. They are dominated by computer/electronic production and automotive. Because of how the statistics account for imports and technology advancement, the electronic components in particular are frequently overstated. For example, when Intel was shipping chips that were 2x more powerful than the last generation, that effectively doubled the measured output. Simultaneously, the stats under account for services and non-market production. So things like Medicare/Medicaid ($1T annually) are measured at their cost, not based in the value delivered. The reality is that industrial production in the US is 15-20% less than it was 20 years ago. Automation kills employment but most of the value creation has been exported to Asia. Denying that is denying reality. Some articles:
http://www.economist.com/news/briefing/21697845-gross-domest... http://www.realclearpolicy.com/blog/2015/05/27/the_hidden_de... https://www.bloomberg.com/news/articles/2009-06-03/growth-wh... |
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> The reality is that industrial production in the US is 15-20% less than it was 20 years ago.
I wonder how recently and carefully you have read these articles. For example, the Economist and Real Clear Policy pieces are directly contradictory on the subject of measuring value vs. price for electronics.
The Bloomberg piece is 8 years old. And even then, it says:
> After the adjustments, however, the new growth rate for manufacturing output might be as small as 0.8% a year,
Growth of 0.8% a year, while anemic, is not a decline.