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Government has grown while manufacturing has not.......
Old 04-07-2011, 12:17 PM   #1
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Government has grown while manufacturing has not.......

Interesting article:

CARPE DIEM: Two Americas: Public vs. Private Employees
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Old 04-07-2011, 12:33 PM   #2
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This shouldn't be news to anyone that's paying attention.

Nonetheless the trend is disturbing on many levels.
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Old 04-07-2011, 12:52 PM   #3
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Well, we are fighting two wars. That takes a lot of logistics and support.
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Old 04-07-2011, 12:52 PM   #4
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Although the gap may not be as large as represented, I'll bet the compensation/benefits follow similarly. I find that very disturbing.
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Old 04-07-2011, 12:56 PM   #5
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Well, we are fighting two wars. That takes a lot of logistics and support.
Are you referring to the War on Poverty and the War on Drugs ?
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Old 04-07-2011, 01:02 PM   #6
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Don't forget the war on illegal immigration!
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Old 04-07-2011, 02:36 PM   #7
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Don't forget the war on illegal immigration!
Or the war on the idle rich, the war on poverty, or the war on the middle class.
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Old 04-07-2011, 02:42 PM   #8
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Or the war on the idle rich, the war on poverty, or the war on the middle class.
We should have a war on wars...
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Old 04-07-2011, 02:47 PM   #9
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We should have a war on wars...
with it's own theme song...


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Old 04-07-2011, 03:02 PM   #10
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Blame the robots.
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Old 04-07-2011, 03:16 PM   #11
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I've always liked this quote (forgot who wrote it, as probably did the President to whom it is attributed):

Government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other.
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Old 04-07-2011, 03:29 PM   #12
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Blame the robots.
Exactly manufacturing jobs have been disappearing world wide for close to 50 years. Just like 100 years before that farm jobs disappeared.

The country that lost the most manufacturing jobs in 2000s was China, at one point in 2009, China was on track to lose more manufacturing jobs in than the US had >10 million. Now some of these Chinese jobs were lost to places with even cheaper labor like Malaysia or Vietnam. But most were lost to automation. Blame it on SkyNet.

Most of the job loss in manufacturing were made up with an increase in service jobs. Now if you want complain that Government doesn't provide a whole lot of service for the dollars we spend, you'll get no argument from me.
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Old 04-08-2011, 12:06 PM   #13
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The OP links to an article in the WSJ which begins

Quote:
By STEPHEN MOORE

If you want to understand better why so many states—from New York to Wisconsin to California—are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.
IF that's a problem, what might we do about it? The first thing that comes to my mind is that it's hard to have "free trade" when one side is manipulating its currency, so maybe we should have put a small tariff on Chinese goods, just enough to offset the currency peg. I'll bet the WSJ and this author would be up in arms against any such suggestion.
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Old 04-08-2011, 02:12 PM   #14
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I thought the graph would have been more informative if it has shown employment as a percent of total. So I went to the source and did my own math. This is the result:


Year : PGd : Man : PSv : HCr : Fed : St : Lcl

1940 : 7% : 31% : 49% : _% : 3% : 2% : 7%
1950 : 7% : 31% : 48% : _% : 4% : 2% : 7%
1960 : 7% : 28% : 49% : _% : 4% : 3% : 8%
1970 : 6% : 25% : 51% : _% : 4% : 4% : 10%
1980 : 6% : 21% : 55% : _% : 3% : 4% : 11%
1990 : 6% : 16% : 54% : 7% : 3% : 4% : 10%
2000 : 6% : 13% : 57% : 8% : 2% : 4% : 10%
2010 : 5% : 9% : 58% : 11% : 2% : 4% : 11%


Headings are:
PGd - Private Goods other than Manufacturing
Man - Manufacturing
Psv - Private Services other than Health Care
HCr - Health Care
Fed - Federal Government
St. - State Governments
Lcl - Local Governments

The BLS didn't split out Health Care until 1990 (at least in the file I found).
The BLS didn't split state vs. local until 1955, so I used the 1955 split for prior years.

At any rate, the message is that:
Private Goods went from 38% to 14%.
Private Services went from 49% to 69%.
Government went from 10% to 15%.

Most of the lost manufacturing jobs were replaced by private sector service workers, not by government workers.

Table B-1. Employees on nonfarm payrolls by industry sector and selected industry detail [In thousands]
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Old 04-08-2011, 03:05 PM   #15
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So if I read the tables correctly, manufacturing dropped off a cliff. State and local government, as well as government health care really took off.
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Old 04-08-2011, 03:16 PM   #16
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Looks like we'll have a big dip after midnight....at least for a while. DH and I are planning to take advantage of the lack of traffic next week and see some sites. The cherry blossoms are beautiful even if the monuments are closed.
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Old 04-08-2011, 04:01 PM   #17
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Nothing to surprising from the data, manufacturing dropped off a cliff, healthcare skyrocketed in the last 10 years (but wasn't increasing much before then the, 0%'s are very misleading and should be blanks since there was no data), government grew slightly, private services went up a good bit.

I would not be surprised if a good chunk of the private services growth is from colleges, which have sky-rocketed in numbers AND tuition.

The big take away is that manufacturing will be gone completely in 20 years and colleges+health care will be sucking in 30% of the economy quite soon in manufacturings place.
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Old 04-08-2011, 05:08 PM   #18
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So if I read the tables correctly, manufacturing dropped off a cliff. State and local government, as well as government health care really took off.
Math skooling dropped off a cliff too.
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Old 04-08-2011, 06:43 PM   #19
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, 0%'s are very misleading and should be blanks since there was no data),
Good suggestion. I fixed it.
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Old 04-08-2011, 06:52 PM   #20
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The big take away is that manufacturing will be gone completely in 20 years and colleges+health care will be sucking in 30% of the economy quite soon in manufacturings place.
I checked higher ed teachers and administrators in the Occupational Outlook Catalog. They had about 1.7 million (that includes all post-secondary, not just four year colleges) which works out to 1.3% of the total. They expect "faster than average growth".
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