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Us Manufactrure

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Submitted By gnaroditsky
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Assignment #4 “Interpreting Macroeconomic Conditions”
Gene Naroditsky
Professor: Dr. Blondel Brinkman
ECO 550: Managerial Economics and Globalization
Strayer University
June 5, 2011 I. Manufacturing

1. Abstract.
When assessing the size and importance of the U.S. manufacturing sector, it is vital to recognize that many other sectors, such as finance, telecommunications, wholesale and retail trade, and accounting, depend on a strong manufacturing base. While U.S. manufacturing itself is the eighth largest economy in the world, its impact on the overall U.S. economy is much larger when this “multiplier effect” is taken into account. And reports of the demise of the manufacturing economy in the 21st century are clearly premature. While the general public perceives a manufacturing sector marked primarily by a loss of jobs, the facts about the industry paint a different picture.
The United States is the world's largest manufacturing economy, producing 21 percent of global manufactured products. China is second at 15 percent and Japan is third at 12 percent.
U.S. manufacturing produces $1.6 trillion of value each year, or 11.2 percent of U.S. GDP. Manufacturing supports an estimated 18.6 million jobs in the U.S.—about one in six private sector jobs. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing. In 2009, the average U.S. manufacturing worker earned $74,447 annually, including pay and benefits. The average non-manufacturing worker earned $63,122 annually. U.S. manufacturers are the most productive workers in the world—twice as productive as workers in the next 10 leading manufacturing economies. U.S. manufacturers perform two-thirds of all R&D in the nation, driving more innovation than any other sector. Taken alone, U.S. Manufacturing would be the 9th largest economy in the world.

2. Analysis of...

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