How the US lost Manufacturing

The loss of US dominance in manufacturing began in 1945. The US federal government in all 3 branches implemented stealth policies to offshore our manufacturing to other countries. 

The US was not touched by World War I or World War II and our manufacturing companies provided durable goods to much of the rest of the world from the 1940s through the 1960s.

In the 1960s, it was common for US companies to put plants in other countries who bought the products produced by these plants. Shoe and clothing manufacturers were looking to go overseas.

In the 1970s, it was clear that US cars would lose market share to better-made foreign cars with better gas mileage. It was also clear that most of our large manufacturing industries were being ruined by US Labor Unions. Foreign competitors were quick to take over entire industries like steel, aluminum, textile, chemicals, minerals, appliances, automobiles, The US stopped harvesting lumber. Steel plants were closing in the US.

In the 1980s, we had a resurgence in manufacturing in the US due to the PC and advances in US electronics and the new companies avoided unionization. Japan and Germany were quick to develop equipment for electronics production like auto-insertion and wave-solder machines. Japan, South Korea, Taiwan and other countries were developing flat-screens for TVs and PCs.

The “Global Economy Hoax” was being implemented. US corporate tax rates were becoming uncompetitive. In the 1980s, the US stopped drilling oil. 

In the 1990s, US industries were closing and being bought and replaced by foreign owned companies. US companies who used to make appliances were replaced. RCA used to make TVs. Admiral used to make refrigerators. The “Rust Belt” used to make steel and machinery. Motorola used to make electronics. US companies were beginning to buy electronic circuit board contract manufacturing from China for a 50% cost reduction.

In the 2000s, the erasure of the US middle class was clear. Manufacturing jobs were still going overseas. Toyota introduced the Prius Hybrid. Japanese, South Korean and German cars dominated the US market.

In 2016 we elected Trump to reverse the decline of the US economy.  See the post titled “Manufacturing by Country” to assess the damage that has to be repaired.

Norb Leahy, Dunwoody GA Tea Party Leader