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Cato Daily Podcast

'American Deindustrialization' Is a Dangerous Myth

Oct 30, 2023
The podcast explores the myth of American deindustrialization and highlights evidence that the decline in manufacturing employment is not true. It suggests that making it easier to import goods and allowing for a more permissive immigration regime can address labor shortage in the industry. The podcast also discusses the necessity of continuous transition for economic progress, the declining significance of manufacturing in the US economy, and the true reasons behind factory closures. It emphasizes the importance of economic diversity and understanding economic shifts.
11:44

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Quick takeaways

  • American manufacturing is thriving, accounting for a greater share of global manufacturing output than Japan, Germany, and South Korea combined.
  • To enhance manufacturing employment, it is essential to remove trade barriers and have a more permissive immigration regime.

Deep dives

Manufacturing is still a dominant force in the United States

Contrary to the belief that manufacturing employment is in decline in the United States, American manufacturing is thriving. The United States accounts for a greater share of global manufacturing output than Japan, Germany, and South Korea combined. Although manufacturing employment has declined, it is largely due to increased productivity. Americans are able to produce more with fewer people, making them incredibly efficient manufacturers. Moreover, the United States exports high-tech goods, such as machinery and aerospace equipment, to other manufacturing powers like China, Germany, and Japan.

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