This may be a sign that the economy's growth is increasing, due to the increase in the manufacturing sector. Thoughts?
Thursday, March 10, 2011
Rustbelt Recovery
This article covers the increase in American manufacturing, as well as the increase in the employment rates in the sector. Manufacturing employment has risen 1.6%, which is the highest on record since the late 1990's. Ohio was one of the states to have unemployment rates fall more sharply, and this may be due to the heavy manufacturing in the state.
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3 comments:
It's great to see manufacturing rebounding, especially considering it was the industry hardest hit during the recession. The losses in the manufacturing industry account for a large percentage of the overall high unemployment numbers that we have seen.
It is doubtful the manufacturing industry will return to the booming era it once enjoyed. Overseas manufacturers have proven they can provide quality manufactured goods at much cheaper prices than the U.S. So many American manufacturers will have to retool and innovate for the new globalized world.
It is great to see the manufacturing industry rebounding in the Rustbelt. However, it would need to be subsidized in order to keep it afloat, otherwise, it would not be able to match China and India as well since it would be cheaper overseas.
With Caterpillar and John Deere, they are expected to increase only if the United States decide to invest itself heavily and have the banks invest in public goods.
I disagree - manufacturing should have been exported and the U.S. should have focused more on switching to service and high tech industries ; this is the natural economic response.
Also, about subsidies - we should hope that the government does not try to help the manufacturing industry with subsidies because subsidies to the agriculture industry is a major drain on government budget and is a major source for blame for the states and federal budget deficit.
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