The end of "policy uncertainty" helped send U.S. manufacturing jobs to China
As we reported earlier this week, a new study has linked a sharp drop in American manufacturing employment after 2001 to the U.S. granting permanent normal trade relations (PNTR) to China in late 2000.
Marketwatch's article focused on an intriguing conclusion of Pierce and Schott, namely that the granting of PNTR to China ended Washington's "policy uncertainty" toward Beijing. Prior to PNTR, the possibility of future tariffs had helped to "keep more U.S. manufacturing at home."
But after PNTR, according to Pierce and Schott, U.S. manufacturers felt free to shift plants and jobs to China. Essentially, they no longer had to worry about sudden tariff increases.
Pierce and Schott say the result was a sharp acceleration in the outsourcing of U.S. manufacturing. Jobs in the sector fell to 13.7 million in 2007 from 17.2 million in 2000, according to the U.S. Labor Department.
But it's nice to see a fresh voice offering similar concerns.
Related recent Blogs
- Postcard from Montana: AAM field coordinators talk manufacturing in Big Sky Country • by LRaup • 03/16/2014
- Postcard from Kansas: Trade reform a hot topic at the 2014 Washington Days • by LRaup • 03/15/2014
- March 14, 2014: We're all over the place • by mmcmullan • 03/14/2014
- China's currency manipulation continues to be a serious problem for the U.S. economy • by scapozzola • 03/14/2014
- The fix (for transportation funding) isn't in yet, and that's a bad thing • by mmcmullan • 03/13/2014
- Who is funding China's military rise? We are. • by mmcmullan • 03/13/2014
- WATCH: Laid off by trade inaction, workers speak for themselves • by mmcmullan • 03/13/2014
- How dependent on China is the U.S. military? • by scapozzola • 03/12/2014
- What good's a trade agreement if you don't enforce the on-the-books trade rules? • by mmcmullan • 03/11/2014
- A National Manufacturing Strategy could be the "be all, end all" for depressed wages • by LRaup • 03/11/2014