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PeakTrader said...

The chart seems to show real manufacturing output per worker rose less in the 1965-82 bear market than the 1982-00 bull market.

Yet, it rose at a much steeper rate after another bear market began in 2000.

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Johnster said...

What about a graph of average annual salary+benefits in 2009 dollars of a manufacturing worker in the US in the same time frame so we can see if they are receiving increased compensation proportional to their increased productivity? I highly doubt we will get this graph.

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PeakTrader said...

Johnster, the price of the manufactured good should also be taken into account, e.g. after five years, your income is 50% higher and the price of the good you're manufacturing is 10% higher.

Capital equipment, paid by the manufacturer, to increase productivity can make worker's jobs easier.

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Terry said...

The graph is somewhat misleading. During this period of time the US shed thousands of textile, sewing, shoes, and other types of jobs. Fortunately the low end manufacturing jobs were replaced with airline, computer, and auto production of much higher value. There was productivity gains but most of the increase has been a shift in type of production. As the US continues to lose manufacturing jobs, the country will begin to see a drop in manufacturing output.

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PeakTrader said...

Terry says: "As the US continues to lose manufacturing jobs, the country will begin to see a drop in manufacturing output."

While U.S. manufacturing has been losing jobs, the value of manufacturing output has been increasing:

Economy of the United States-Manufacturing, Wikipedia:

The United States is the world's largest manufacturer, with a 2007 industrial output of $2.69 trillion... the US leads the world in airplane manufacturing...Main industries include petroleum, steel, automobiles, construction machinery, aerospace, agricultural machinery, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.

The U.S. produces approximately 21% of the world's manufacturing output, a number which has remained unchanged for the last 40 years.

The job loss during this continual volume growth is explained by record breaking productivity gains. In addition, growth in telecommunications, pharmaceuticals, aircraft, heavy machinery and other industries along with declines in low end, low skill industries such as clothing, toys, and other simple manufacturing have resulted in U.S. jobs being more highly skilled and better paying.

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PeakTrader said...

The U.S. will maintain its global manufacturing share, in part, because the U.S. produces goods other countries can't.

Federal Reserve Bank of Chicago
Is U.S. Manufacturing Disappearing?
August 19, 2010

By 2006, the U.S. economy employed about as many workers in manufacturing as in 1950, just over 14 million.

While employment has changed very little over the past 60 years, output in manufacturing has increased at an annual rate of 3.4%. Manufacturing output in 2007 was over 600% higher than in 1950.

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PeakTrader said...

The statement...:

"The U.S. produces approximately 21% of the world's manufacturing output, a number which has remained unchanged for the last 40 years."

...is amazing, because the U.S. has imported up to $800 billion a year more than it has exported, which raises manufacturing output in other countries.