Trade has indeed caused many manufacturers to shift their operations offshore. And there's no denying that a hefty portion of the U.S. manufacturing base has been decimated over the past couple of decades. But is the first trend really to blame for the second? On this episode, we hear a nuanced perspective on why domestic production jobs have disappeared. Michael Hicks, professor of economics and director of the Center for Business and Economic Research at Ball State University, says the real reason behind most job losses is higher worker productivity, not trade. And that's primarily a result of advances in automation, coupled with more efficient supply chains. Hicks also points out that U.S. manufacturing output today is higher than it's ever been. But what do we tell those workers who have lost lucrative plant jobs? Hosted by Bob Bowman, Managing Editor of SupplyChainBrain.
Look for a new episode of the podcast, which can be downloaded or streamed, every Friday on the SupplyChainBrain website and iTunes.
Ball State's study on "The Myth and Reality of Manufacturing in America."
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