Productivity, employment and manufacturing

Andrew McAfee has written another post on his blog about how employment appears to have been affected by technology. He quotes research by Jared Bernstein which shows how employment and productivity are diverging, and which attributes its to outsourcing and off-shoring.

I remember when that trend started to take root in the US around the Y2K period, and was continually amazed at how the corporations that did it, and the society it occurred in, were more interested in the short-term gains (lower costs and prices, higher profits) than the obvious long-term consequences (less local industry, more unemployment).

In my opinion, the solutions for the US is to start ‘re-shoring’ and to re-establish its manufacturing sector. A number of  industry publications (e.g.,IndustryWeek and Manufacturing Executive)  have been calling for this. I really look forward to seeing Americans being proud of having a thriving manufacturing sector back in their country.

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