The High Price of Losing Manufacturing Jobs
The loss of U.S. manufacturing jobs is a topic that can provoke heated arguments about globalization. But what do the cold, hard numbers reveal? How has the rise in foreign manufacturing competition actually affected the U.S. economy and its workers?
A new study co-authored by MIT economist David Autor shows that the rapid rise in low-wage manufacturing industries overseas has indeed had a significant impact on the United States. The disappearance of U.S. manufacturing jobs frequently leaves former manufacturing workers unemployed for years, if not permanently, while creating a drag on local economies and raising the amount of taxpayer-borne social insurance.