alt Hacker NewsThe 1/5th is definitely very approximate.
There’s a decline in the relative share, but that’s down to the rest of the world growing. Adjusted for inflation, 1997 was slightly below the current figure. That’s nothing to brag about, but it’s a far cry from the “we don’t make anything anymore” narrative I see so much.
Where it has declined substantially is employment. That peaked at almost 20 million at the end of the 70s and is now under 13 million.
Yes. I do agree with you on
> The idea that the US lost its manufacturing is not based in reality.
But I disagree with your claim that people are right in being extremely dismissive of losses in US manufacturing.
>> Absolutely people were extremely dismissive to anyone saying that we're losing the ability to make things in this country!
Interpreting that as a complete loss of manufacture capacity I agree with you, with the qualification that concerns of relative decline were justified since there was a definite decline in aggregate.
I have to say that overall I don't think economies and citizens of these economies should prefer certain economic activities over others. In principle I think specialization is a good thing. On the other hand, I do think that the US has committed some strategy mistakes in terms of how much manufacturing activity was moved out of the country and how dependent it has come to be on foreign supplies of, for instance, rare earths and advanced IC.
But that analysis is predicated on US strategic goals and geopolitical intent. The coming impasse over Taiwan with China is almost completely self imposed due to the prioritization of short term corporate profit over strategic goals.
But that is a different conversation altogether. I think data from the past 30 years show that alarmism over de-industrialization was overblown as you said AND that there has been nonetheless a significant decline in the previously absolutely dominant position of the US economy in global manufacturing. If that is good or bad, to whom or to what ends, is way outside the scope of internet forum messages.