In 1790, farmers were 90 percent of the U.S. labor force. By 1900, only about 41 percent of our workers were employed in agriculture. Today less than 3 percent of Americans are employed in agriculture. And it’s a good thing. If 90 percent or 41 percent of our labor force were still employed in agriculture, where in the world would we find the workforce to produce all those goods and services that weren’t around in 1790 or 1900, such as cars, aircraft, TVs, computers, aircraft carriers, etc.?
What about the claim that our manufacturing jobs are going to China — a claim that’s fueling the Trump administration to impose trade barriers? It is true that between 2001 and 2013, 3.2 million jobs were outsourced to China. However, in the same time frame, China lost about 4.5 million manufacturing jobs, compared with the loss of 3.1 million in the U.S. Job loss is the trend among the top 10 manufacturing countries, which produce 75 percent of the world’s manufacturing output (the U.S., Japan, Germany, China, Britain, France, Italy, South Korea, Canada and Mexico). Only Italy has managed not to lose factory jobs since 2000. Nonetheless, the U.S. remains a major force in global manufacturing.
Because of automation, the U.S. worker is now three times as productive as in 1980 and twice as productive as in 2000. It’s productivity gains, rather than outsourcing and imports, that explain most of our manufacturing job loss.
If our manufacturing sector were its own economy and had its own gross domestic product, it would be the seventh-largest in the world. Total manufacturing value could be as high as $5.5 trillion. In other words, about 17 percent of global manufacturing activity happens in the United States, and America dominates advanced manufacturing.
Economist Joseph Schumpeter described the process of technological change. He called it “creative destruction.” Technology and innovation destroy some jobs while creating many others. According to the Bureau of Labor Statistics, the U.S. labor force in 1950 was 62 million. By 2000, it was 79 million, and it’s projected to reach 192 million by 2050. Though the “creative destruction” process works hardships on some people who lose their jobs and are forced to take lower-paying jobs, any attempt to impede the process would make all of us worse off.
Writes for Creators Syndicate.
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