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2026-06-23 Economy

Breitbart Business Digest: Why Did Globalization Crash Manufacturing Productivity?

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Posted by Skidmark 2026-06-23 07:39|| E-Mail|| Front Page|| [1772 views ] Top

1 Here's the conclusion:

The Import Invasion did not just replace American goods with foreign goods. It hollowed out the system that produced American productivity.

What we saw was surge in imports relative to what America still made at home. Imports as a share of domestic manufacturing output rose from 28 percent in 2000 to 45 percent in 2023. In other words, foreign production did not simply supplement American manufacturing. It increasingly substituted for it.

That matters because productivity gains are not primarily produced by Ivy League-educated consultants or white papers. They come from inside an industrial system. When import competition drives down domestic output, plants close, workers leave, suppliers disappear, and process knowledge migrates abroad. In other words, Gordon and Ryu argue that the factory floor is not just where goods are assembled. It is where engineers learn what works, where defects are discovered, where workers find better methods, and where suppliers and manufacturers solve problems together. Workers bring this kind of knowledge with them as they shift between firms when manufacturing employment is abundant. Hollow out production, and eventually you hollow out the capacity to improve production.

Posted by mossomo 2026-06-23 13:56|| 2026-06-23 13:56|| Front Page Top

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