The state of US manufacturing

J. McPherskesen/Flickr

Inside the Tillamook Cheese Factory in Tillamook, OR.

Article Highlights

  • The #market needs to determine what resources manufacturers need...not government #policy @AlexBrill_DC

    Tweet This

  • Policymakers should promote #economic growth by improving the U.S. #business environment as a whole

    Tweet This

  • Corporate tax reform could facilitate health business environments for manufacturers @AlexBrill_DC

    Tweet This

View this testimony as an Adobe Acrobat PDF

Chairman Casey, Vice Chairman Brady, and other members of the Committee, thank you for the opportunity to appear before you this morning and discuss the U.S. manufacturing sector--a key part of our economy. The significance of manufacturing to the U.S. economy is undeniable, and the role and dynamics of this sector are important to study. It is critical to recognize, however, that manufacturing is but one segment of the U.S. economy, and the share of the resources dedicated to this sector should be determined by market forces, not government policy.

The role of policymakers should be to establish broad, effective, and stable policies that permit the U.S. economy to evolve as market forces dictate. Given that objective, policymakers should not seek to develop targeted subsidies or narrowly tailored economic policies for a single sector, not for one as large and important as manufacturing or for other smaller sectors. Instead, policymakers should promote economic growth by improving the U.S. business environment as a whole. Pursuing structural reforms will benefit the manufacturing sector directly by reducing costs and impediments and indirectly by encouraging growth across the entire economy.

There are many ways policymakers can pursue the goal of facilitating a healthy business environment for manufacturing and other sectors. Trade liberalization, corporate tax reform, education and job training, legal reforms, a comprehensive energy policy, and other infrastructure improvements are but a few. In my testimony this morning, I will focus on just one--corporate tax reform. However, it is important for the purposes of this hearing to understand the evolution of the manufacturing industry. Therefore, I will begin with an overview of the current state of manufacturing in the U.S. and the longer-term employment and productivity trends in the sector.

Alex Brill is a research fellow at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Alex
Brill

What's new on AEI

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Event Registration is Closed
Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Event Registration is Closed
Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.