Trade policies enacted over the last half-century or more have had disastrous effects on American industry. The good news is that by consciously seeking out American-made products, consumers can drive wide-ranging economic benefits and back American workers. Here are four statistics that illustrate the erosion of American manufacturing and four more that illustrate why “buying American” matters.
The Bad…
In June 1979, manufacturing employment reached an all-time peak of 19.6 million. In June 2019, employment was at 12.8 million, down 6.7 million or 35 percent, not factoring in population growth. Source: U.S. Bureau of Labor Statistics
In 1991, US-made products represented more than half of all clothing bought in the country; today it is about 3 per cent, according to the American Apparel and Footwear Association. Source: Financial Times.com
Note: NAFTA went into effect in 1994; many apparel jobs were lost to Mexico.
About 32 percent of (American) workers held manufacturing jobs in 1953, but that share was down to just 8.7 percent in 2015. Source: The Federal Reserve Bank of St. Louis
The number of manufacturing jobs in the U.S. dropped from over 17 million in 2000 to just over 12 million in 2015. Source: The Federal Reserve Bank of St. Louis
The Good…
For every $1.00 spent in manufacturing, there is a total impact of $2.60 to the overall U.S. economy. This figure represents one of the largest sectoral multipliers in the economy. Source: National Association of Manufacturers
For every one worker in manufacturing, 4.4 workers are added in the overall U.S. economy, including indirect and induced impacts. Source: National Association of Manufacturers
For every $1.00 earned in direct labor income in the manufacturing sector, $3.75 in labor income earned is added to the overall U.S. economy. Source: National Association of Manufacturers
Economists say that if every one of us spent an extra $3.33 on U.S.-made goods every year, it would create nearly 10,000 new jobs in this country. Source: ABC News
Bonus
Polls indicate that about two-thirds of Americans would pay more for US-made products over imports. Source: NY Times
Recent Comments