In today’s Washington Post columnist Robert Samuelson writes about the current state of manufacturing in the United States. In the piece he makes a very interesting claim that the services industry in the United States depends on manufacturing.
It’s a mistake to romanticize manufacturing and disparage services, portraying them as separate economic realms in competition with each other. In reality, they’re completely intertwined. Almost all services depend on manufactured products. Air travel requires planes, the Internet needs computers, and health care dispenses pharmaceuticals. And almost all manufactured products generate services. Cars provide transportation, homes give shelter, and films offer entertainment. There’s plenty of industry left in post-industrial America.
His assertion that all manufactured products generate services would explain why manufacturing still has the largest multiplier effect of any other industry. For every $1 that is spent in manufacturing, another $1.48 is added to the economy.
With the right policies in place from the NAM’s Growth Agenda manufacturing can lead our economy and begin to create jobs for American workers. The natural gas boom is a clear game-changer that is making manufacturers more competitive and we can’t afford to squander this tremendous advantage. It’s time for policymakers in Washington to move forward with pro-growth policies so we can expand the manufacturing multiplier effect.
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