Geopolitical Economy Report What caused US deindustrialization, and can Trump fix it? Economists explain
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May 15, 2025 Explore the roots of U.S. deindustrialization, highlighting how political policies, particularly under Trump, have influenced manufacturing decline. Dive into the economic impact of tariffs and the misconceptions about trade deficits. Discover how financialization prioritizes short-term gains over long-term innovation, contrasting U.S. strategies with those of China. Unravel the essential role of transportation in trade policies and the disconnect between economic theory and reality, urging a reevaluation of approaches to foster true industrial growth.
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Deindustrialization Is Manmade
- Deindustrialization of the US reflects dismantling of industry rather than natural economic change.
- Reviving industry requires more than macroeconomic tweaks like savings and exchange rates; it needs a full systemic approach.
US Manufacturing Decline Stats
- US manufacturing jobs and GDP share have declined steadily since the late 1970s.
- The US has among the lowest manufacturing employment shares compared to other industrial countries.
Trump Accelerates Deindustrialization
- Trump's policies actively accelerate deindustrialization by undermining the labor force and industry.
- Restricting immigration worsens the industrial labor shortage required for manufacturing.
