American Manufacturing and the U.S Economy Essay

696 Words 3 Pages
For over half a century, American manufacturing has dominated the globe. During this
period, many great American businesses and corporations began. Companies like General
Motors, Levi, and Ford became widely known and promoted. American manufacturing became
synonymous with quality, greatness, and reliability. However, manufacturing in the U.S has
started to plummet as the economy has begun this recession. It may seem as if the country that
used to make everything is really on the edge of making virtually nothing. U.S. jobs in
manufacturing have been vanishing at a fast rate and unemployment percent is on the rise, but
despite the vanishing jobs Americans’ productivity is on the rise and Americans still lead the
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Even with the misfortune with unemployment, Americans still lead the world in
manufacturing. But there is a counterbalance to the drop in total employment, the dramatic rise
in productivity. According to the National Association of Manufacturers, over the past two
decades manufacturing productivity has grown by 94%, which is considerably faster than the rest
of the U.S. business sector, where productivity grew by 38% over the same time period.

Another concept that is brought up by the article is international trade and business. There are
a number of gains to be obtained from international trade, such as lower prices, greater choice,
and a variety of resources. Many of the millions of laid-off workers in recent years ended up
shifting into lower-salaried service jobs, while U.S. manufacturers relocated production facilities
to low-cost countries. The U.S has established great economic trade connections with the rest of
the world, and that has lead to U.S. based plants shifting work over to foreign competitors, such
as China, so that they can have cheap labor. It is much cheaper to have workers overseas
however there is the danger of unemployment. The United States needs to protect the economy
from imports, so sometimes a tariff is applied. A tariff is a tax that is charged on imported goods.
Any tax…