WATCH: What can the US learn from Germany about manufacturing?
There is really no evidence that unions cause that [outsourcing], part of it is a lack of a good manufacturing policy...Germany has $48/hour average wages in manufacturing and 23 percent of the German economy is manufacturing. The US average wage is $32/hour, but we have about half of the manufacturing that Germany has. [Outsourcing] has everything to do with trade policy and currency, health care costs and some other factors.
In an op-ed last year, Paul gives more evidence as to why the U.S. should look to Germany as an example in manufacturing:
Berlin’s strategy is paying off. While the U.S. ran a $540 billion trade deficit last year, Germany hasn’t run a trade deficit in decades. Its 2012 surplus was the second highest since 1950. Roughly one-fourth of its workforce is now employed in manufacturing -- and with all of those workers earning high wages, Germany has guaranteed itself a healthy middle class with the spending power and savings to weather future recessions.
What’s the quickest and most effective way to combat rising trade deficits, you ask? Stopping currency manipulation!
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