Manufacturing Job Loss In US Is The Result Of Government Policy

Dean Baker argues that the fall in US manufacturing jobs is the result of US trade policy. If US trade policy enabled a larger number of professionals to migrate to the US, it would lead to fewer jobs for US born professionals. Our current situation is the result of the difference in power between the two groups. US multinational corporations got what they wanted because they have more influence over government policies than manufacturing workers. US professionals have not been concerned with the problem of job loss due to immigration. If that were to happen, they would have more influence over government policy than manufacturing workers. The US could have enabled the outsourcing of manufacturing with a condition that exchange rates would be allowed to respond to the market. The dollar would have declined in value and limited the loss of US jobs.