\”We know manufacturing produces good jobs, high-paying jobs,\” House Majority Leader Steny H. Hoyer (D-Md.) said this week as Democrats released a report showcasing small gains in manufacturing since Obama took office.
Err, no we don\’t actually.
We know that jobs with high labour productivity produce high pay.
We also know that certain manufacturing processes have high labour productivity.
Just as we also know that certain service processes have high labour productivity.
We also know that certain manufacturing processes have low labour productivity: textiles being an obvious example. Just as we also know that certain service sector processes have low labour productivity: burger slinging perhaps.
What produces the high pay is the high productivity, not whether that productivity is in manufacturing or services.
Just as an example, does anyone think that bringing the Bangladeshi Nike factories to the US is going to result in high paying jobs in the US? Or moving Foxxconn\’s 800,000 assembly jobs currently paying $300 a month to the US will?