Selected US Trade Statistics

Manufacturing and Productivity Gains between

2000 and 2010

Who benefits most from free trade and global

economic integration?

What kind of role does the US play in the global

value chain?

The problem with free trade and globalization in

the last twenty years is not trade
liberalization.

1) US is the worlds 2nd largest manufacture

(17.2% of global output) and the worlds third
largest exporter.
2) The US is the top destination for FDI, 384
million in 2015 alone. Double 2nd Hong Kong,
Triple 3rd china.
3) More than of all imports are capital goods
consumed by US businesses in the
manufacture and production of other goods.
4) Free trade partner purchase 13 times more
Almost 90% of US manufacturing job losses
since 2000 are related to productivity gains. If
we had maintained year 2000 productivity and
applied it to 2010 manufacturing output, we
would have need an additional 20.9 million
manufacturing workers, instead we only added
12.1.

Because the spending of the poor and middle

class is principally concentrated in highly traded
sectors (food, clothing, mass produced goods)
they enjoy almost 90% of the consumer benefits
of trade.

US companies and manufactures are essential

links in a breathtakingly complex global value
chain. Companies and manufactures across the
global working together is now essential for the
production of most goods.
WTO: 40% of all US exports are involved in
global values chains
31% of all exports from China, Canada and
Mexico contain US inputs
34% of US exports contain inputs from
those countries.
The problem is that labor-market adjustments
are too slow. Because businesses are
centralized, centralized suffering occurs via
capitalisms creative destruction. When labor
markets adjust gains are realized. The evidence
of this is seen in the fact that the US does not
suffer from a lack of non-farm jobs openings, we
have more than a million unfilled jobs in
manufacturing, construction and transportation,
job openings in these fields outpace hiring.


Labor dynamism has also suffered because of
private sector failures

Labor department: Formal programs that

combine on-the-job learning with
mentorships and education fell 40% in the
US between 2003 and 2013.
On the job training from 13.1% to 8.4%
between 1996 and 2008, Employer paid
training fell from 19.4% to 11.2% during
the same period.

In the US we have a loss of Labor Dynamism and

fluidity due to.

An older work force (baby boomers), less willing

than younger counterparts to change jobs. Not
the case in the 1970s and 1980s when BB were
younger. Also regulations:
Federal tax deduction for work related
education but only for education related
to your current job?
Spread of occupational licensing, erosion
of employment at will
Tax and regulatory cost: $14 per hour