It’s a good thing Trump wants to rebuild our manufacturing base, because it truly has taken a hit. We’ve turned from a nation of builders to burger flippers.
To put in perspective just how bad things have gotten – there were more Americans employed in manufacturing in the months leading up to Pearl Harbor than there are today, despite the fact that the population then was a fraction of what it is today.
In that time, there was 1 person employed in manufacturing for every 10.6 people in the overall population compared to 1 person employed in government for every 26.1 people in the overall population.
Oh how things have changed. As CNS News reported:
Those employed by government in the United States in August of this year outnumbered those employed in the manufacturing sector by almost 1.8 to 1, according to data published by the Bureau of Labor Statistics.
There were 21,995,000 employed by federal, state and local government in the United States in August, according to BLS. By contrast, there were only 12,329,000 employed in the manufacturing sector.The 2015 Federal budget spends an unprecedented $3.7 trillion which leaves us with a deficit of over half a trillion dollars.
Trump’s plan to restore the manufacturing base consists of placing tariffs on Chinese goods and reducing our relatively high corporate tax rate which incentivizes businesses to set up overseas.There’s a huge opportunity to kill two birds with one stone here. Shrink the government, and when people ask where those former government employees are going to work we’ll have some nice manufacturing jobs waiting for them.
[Note: This post was authored by The Analytical Economist]