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A week and a half ago, I admitted I didn’t understand the fascination with reviving U.S. manufacturing. Apparently, however, mainstream economists have come up with a new plan to boost the production of goods “made in America,” which will help U.S. industrialists compete on the global stage. After conducting an in-depth analysis of the nation’s […]

I don’t get it. Why is “making things in America” such a high priority? The fact is, manufacturing, as a share of GDP, has declined in the United States and in the world as a whole. And even as the value of the dollar declines and U.S. manufacturing output recovers, it’s not going to generate […]

Yesterday, I discussed new findings concerning the fact that, while the United States is getting richer every year, American workers are not. That same problem is showing up in American cities, which since 1970 have experienced a “hollowing-out” of the middle-class. The graphic above shows the change in income distribution in 20 major U.S. cities between 1970 and 2015. […]

I am quite willing to admit that, based on last Friday’s job report, the Second Great Depression is now over. As regular readers know, I have been using the analogy to the Great Depression of the 1930s to characterize the situation in the United States since late 2007. Then as now, it was not a recession […]

Special mention  

Treasury Secretary Steve Mnuchin may not be worried. Nor, it seems, are other members of the economic and political elite. But the rest of us are—or we should be. As regular readers of this blog know (cf. all these posts), the robots are here and they’re rapidly replacing workers, thus leading to less employment, downward pressure […]

Both Peter Temin and I are concerned about the vanishing middle-class and the desperate plight of most American workers. We even use similar statistics, such as the growing gap between productivity and workers’ wages and the share of income captured by the top 1 percent.   And, as it turns out, both of us have invoked Arthur […]

It’s obvious to anyone who looks at the numbers that the wage share of national income is historically low. And it’s been falling for decades now, since 1970. Before that, during the short Golden Age of U.S. capitalism, the presumption was that the share of national income going to labor was and would remain relatively […]

It’s true (as I have argued many times on this blog), the number of U.S. manufacturing jobs has been declining for decades now—and they’re not coming back. Instead, they’ve been replaced (as is clear in the chart above) by service-sector jobs. source And, not surprisingly, most new jobs (during the past year, as in recent decades) have […]

Donald Trump promised to bring back “good” manufacturing jobs to American workers. So did Hillary Clinton. Both, as I argued back in December, were wrong. What neither candidate was willing to acknowledge is that, while manufacturing output was already on the rebound after the Great Recession, the jobs weren’t going to come back. They were […]