Wednesday, May 13, 2009

America Re-Imports Job Multiplier Effect

Over 2 million U.S. manufacturing jobs went to China during the Bush years. The Chamber of Commerce discounted any negative impact of lost wages, citing the power of the "cheap goods" dollar extender.

The recession cost America an additional 3.6 million jobs. Stimulus plans brought back the jobs multiplier. Crain's Cleveland Business reported:

Most economists agree that manufacturing has a large multiplier effect, with each job in manufacturing leading to the creation of two to five additional jobs elsewhere, depending upon which economist’s estimates are used.
Private equity underwriters and union stewards asked Congress to do more and invest in manufacturing. The odd couple testified today in a Senate Banking Subcommittee on Economic Policy. The Carlyle Group will partner with just about anybody for money.