The United States is facing significant economic challenges, marked by a lack of productivity growth in its manufacturing sector over the last 15+ years and a concerning trend of prime-age men permanently exiting the labor force. This issue, which mirrors a similar trend in Italy (lhs), has not been offset by an increase in female labor participation for the period that matters (rhs). The stagnation in manufacturing productivity can largely be attributed to the diminishing returns of Moore's law in computer electronics and the end of a wave of offshoring, which reduced hours worked without a corresponding decline in overall labor.
A good post on the puzzle of low European productivity growth. Part of it might be U.S. stimulus spending that creates tight labor markets and high wages, prompting U.S. companies to do more automation. https://t.co/p6w8POqMVS
Prime-age men in the US are giving up and exiting the labor force. Only one other advanced economy also has this problem: Italy (lhs). One pushback you often hear is that female participation in the US is up. That's NOT true for the period that matters (rhs). There is no offset. https://t.co/qrXzLIeOM4
Manufacturing productivity has stagnated in the US, and it can be explained almost fully by the end of two waves: a computer electronics TFP boom that waned due to the dwindling impact of Moore's law, and an offshoring wave that reduced hours worked with no equivalent decline in⦠https://t.co/OXHcXyOOpS https://t.co/GlaTR5buPY
Probably the biggest problem for American industryβand one that just doesn't get talked about enoughβis the complete and total lack of productivity growth over the last 15+ years https://t.co/0Uj5VMsana
The US has a major issue of prime-age men giving up and permanently exiting the labor force. What's striking about this is that it doesn't get talked about at all - not in the mainstream media and not by economists - even though this obviously feeds political radicalization... https://t.co/yZCvXC4feg