Manufacturing an Economy that Works for Working Americans

Manufacturing continues to play an essential role in the American economy. Nearly 10 percent of America’s workers are employed in the manufacturing sector; of those, nine percent are scientists and engineers. [Bureau of Labor Statistics [2], Economic Policy Institute [3]] The manufacturing sector is responsible for more than 12 percent of America’s gross domestic product and pays for approximately 60 percent of the research and development work that has made America a technological leader. [Economic Policy Institute [3]]

Millions of manufacturing workers have lost their jobs under President Bush, and countless more jobs are at risk. Between 1965 and the beginning of George W. Bush’s presidency, manufacturing employment remained steady at 16.5 million workers. Though fast growth in other sectors meant that manufacturing’s share of employment shrank during that time, the actual number of manufacturing jobs did not fall below 16.5 million until 2000. [United Steelworkers and EPI [4]] Between 2001 and 2007, more 3 million manufacturing workers lost their jobs—a 17 percent decline—and the trade deficit in manufactured goods increased by 42 percent, bringing it to over $165 billion. [Associated Press [5], Economic Policy Institute [6]]

American manufacturing workers are strong, but conservatives have made America’s trade policies weak. American manufacturing workers are among the most productive in the world, with the world’s second-highest rate of output per hour. [Bureau of Labor Statistics [7]] In contrast, President Bush has been asleep at the wheel, dramatically reducing enforcement of U.S. trade-agreement provisions designed to protect workers. [Brookings Institution [8], CNN/ United Steelworkers [9]]

Conservative trade policies harm America’s workers. America’s trade deficit has increased steadily and reached record levels during the Bush Administration. Now America’s trade deficit in manufactured goods alone costs us nearly $1 million every minute. [American Manufacturing Trade Action Coalition 1 [10], 2 [11]] Even when employers don’t leave the country, just threatening to leave cuts a union organizing campaign’s chances of success in half, leading to lower wages and fewer benefits. [Industrial Union Council [12]]

Allowing our competitors to get away with low-road labor practices hurts workers in America. For every dollar an American manufacturing worker is paid, a worker in Mexico is paid 12 cents and one in Hong Kong makes just 24 cents. [Bureau of Labor Statistics [13]] Increased trade with countries who have few or no worker protections has resulted in a U.S. trade deficit that is $123 billion more than it would be if we traded with countries that play by the rules. [Center for American Progress [14]] The U.S. has much smaller trade deficits with countries that have strong labor standards.