Two interesting posts on industrial output recently. First, Greg Mankiw shows this graph and wants to know if someone forgot to tell the IP data that we are in a recession.
Mark Perry presents this chart that shows the change in industrial output and manufacturing jobs since 1960.
This is evidence that the decline in US manufacturing jobs has little to do with outsourcing and trade and much more to do with technological innovation. US manufacturing workers are now more than four times as productive as in 1960.
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