Just in case you hear phrases like, “America no longer makes things,” “…decline of American manufacturing,” or “China is now the world’s factory,” here are the facts…
Don Boudreaux points out that the latest official statistics from 2007 show that US manufacturing output that year was 8% higher than in 2000, 69% higher than in 1990, and 184% higher than in 1980 (all adjusted for inflation).
Moreover, if you look at the value added in the manufacturing chain, the US leads the world by a healthy margin. In fact, as you can see, the US produced about twice as much manufacturing value added as China in 2005.
Of course, if China keeps growing at their current rate, they will pass the US sometime around 2017. But that’s good because it means they’ll have created a ton of wealth.