Portside

Output growth at the nation’s factories has [...] been weak since 2000. And though automation undoubtedly has displaced some workers in manufacturing, research suggests that persistent trade deficits and America’s decline as a location for production have accounted for much of the sector’s job loss. Boosting exports or reducing imports enough to bring trade into balance would generate 4.2 million jobs directly and another 2.1 million jobs indirectly.

We let companies close factories here, move the equipment to China, bring the same goods back to sell in the same stores, and call that “trade.” But we don’t just “let” companies do this, we give big tax breaks that practically force companies to do this.

Extending the current model of free trade agreements is at odds with a factory renaissance. The trickle of reshoring has raised public hopes, as well as valid doubts about the infallible wisdom the stampede offshore with little appreciation of the needs or potential of. A real renaissance in American manufacturing will require energetic, high-road government intervention with an eye to innovation, not simply fatter paychecks in Guangzhou province.