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Stagnation of Manufacturing Productivity in the United States - Research Paper Example

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This paper "Stagnation of Manufacturing Productivity in the United States" explores the significance of manufacturing productivity for the USA. Admittedly, manufacturing productivity has become one of the important reasons for the nation’s economic development…
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Stagnation of Manufacturing Productivity in the United States
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Stagnation of Manufacturing Productivity in the United States

Download file to see previous pages... Unites states is considered to be one among the top ranking nations when it comes to Manufacturing Productivity. (Dept of Commerce, 2004). The citizens involved in the manufacturing production activities are considered to be the backbone of the American Economy to achieve a huge growth rate. An overall economic development can be achieved by good manufacturing productivity. Manufacturing productions are the major aspect of inventing and deploying the various technological trends, providing jobs to the numerous citizens of all ranges, and the developers usually end up investing a huge amount of resources in the economy depending on the market trends in the manufacturing sector thus forming the essential part of economic development aspects.International trade can be always the major factor for the progress of the global economy, and to overcome the extreme competitiveness the armaments utilized are manufactured goods. But the new technology trends involved with globalization have manifolds expanded the scope of competitiveness by demanding a high rate of production to be the end result of minimized resources. The following have been quoted by (Kevin L. Kearns and Alan Tonelson, 2003) as the reasons for stagnation in the manufacturing economy.The manufactured goods had not brought the expected profits to the nation as there was a lack of opening in the market. This did not consume the required goods in the apt amounts of productions thus bringing in huge losses to the manufacturing economy....
Kearns and Alan Tonelson, 2003) as the reasons for stagnation in the manufacturing economy.

Inefficiency in introducing foreign consumption markets.
The manufactured goods had not brought the expected profits to the nation as there was a lack of opening in the market. This did not consume the required goods in the apt amounts of productions thus bringing in huge losses to the manufacturing economy.

Inability to meet the requirements of the home market.
The required materials where not produced at the right time to the home market. As the manufacturers were short of the basic resources to produce goods with innovation it affected the home market drastically.

Difficulty in managing the imbalances arising due to international debts.
As the manufacturing economy was in running in losses due to lack of proper production of goods in demand; the amount of debts increased. These debts created huge imbalances at the international level.

Downturn in the employment base.
As the manufacturing units ran into losses; the inefficiency of providing proper wages and retaining the workers increased manifolds. This on a large scale affected the overall employment base of the entire nation.

Manufacturing crisis leading to a dependable maintenance of world- leading military.
The necessity to be the universal power had always demanded for high-tech military armaments. The secure military base was built by gathering the diverse technologies from the long-term allies. The dependency to gather technology from various other nations has also become a major factor.

Threat to the industrial base due to an extreme loss in tax revenues.
As the domestic taxes increased the economy had some manufactures losing their production activities in the market. This indeed has brought a ...Download file to see next pagesRead More
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