The Right Amount of Manufacturing
Henderson, David R.
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Mark Perry, an economics professor at the University of Michigan, recently pointed out that in 2009 the U.S. economy had the world’s largest manufacturing sector. (The most recent data show that China’s sector edged out the United States because of our slow economic recovery.) Every year since 2004 U.S. manufacturing output, in constant 2005 dollars, has exceeded $2 trillion. Perry notes that this is double the U.S. manufacturing output of the early 1970s. If U.S. manufacturing alone were an economy, notes Perry, it would be the sixthlargest economy in the world.
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