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What's the administration's specific aim in bailing out GM? I'll give you my theory later.

For now, though, some background. First and most broadly, it doesn't make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any manufactured goods from coming in from abroad -- something I don't recommend -- we'd still be losing manufacturing jobs. That's mainly because of technology.

When we think of manufacturing jobs, we tend to imagine old-time assembly lines populated by millions of blue-collar workers who had well-paying jobs with good benefits. But that picture no longer describes most manufacturing. I recently toured a U.S. factory containing two employees and 400 computerized robots. The two live people sat in front of computer screens and instructed the robots. In a few years this factory won't have a single employee on site, except for an occasional visiting technician who repairs and upgrades the robots.

Factory jobs are vanishing all over the world. Even China is losing them. The Chinese are doing more manufacturing than ever, but they're also becoming far more efficient at it. They've shuttered most of the old state-run factories. Their new factories are chock full of automated and computerized machines. As a result, they don't need as many manufacturing workers as before.

Economists at Alliance Capital Management took a look at employment trends in 20 large economies and found that between 1995 and 2002 -- before the asset bubble and subsequent bust -- 22 million manufacturing jobs disappeared. The U.S. wasn't even the biggest loser. We lost about 11 percent of our manufacturing jobs in that period, but the Japanese lost 16 percent of theirs. Even developing nations lost factory jobs: Brazil suffered a 20 percent decline, and China had a 15 percent drop.

What happened to manufacturing? In two words, higher productivity. As productivity rises, employment falls because fewer people are needed. In this, manufacturing is following the same trend as agriculture. A century ago, almost 30 percent of adult Americans worked on a farm. Nowadays, fewer than 5 percent do. That doesn't mean the U.S. failed at agriculture. Quite the opposite. American agriculture is a huge success story. America can generate far larger crops than a century ago with far fewer people. New technologies, more efficient machines, new methods of fertilizing, better systems of crop rotation, and efficiencies of large scale have all made farming much more productive.

Manufacturing is analogous. In America and elsewhere around the world, it's a success. Since 1995, even as manufacturing employment has dropped around the world, global industrial output has risen more than 30 percent.

More after the jump.

--Robert Reich

MORE...

I just received this following email from a woman that I cannot figure out if she is for real or she was trying to be funny! You decide. I guess Ms Harrison got the latest copy of the Globe while standing in line at the checkout line!

From: Carol Harrison
To: minnman0926@aol.com
Subject: your 'blog'
Date: Mon, 1 Jun 2009 5:46 pm

What President Obama 'did' when he was younger or didn't do, is irrelevant. If the White House knew what you were doing, trying to put out speculation about him being 'gay' and the spin the WH is putting out on him, you'd be hung, drawn & quartered and I'd be right there helping someone do it. 'Bloggers' like yourself, Larry Sinclair, are a dime a dozen and unlike some, I chose not to ignore your absurdities regarding President Obama's sexuality, rather....what's in this for you, except your 15 minutes of "Net"/'blogger' fame!!

Copyright 2009 by Larry Sinclair/larrysinclair.org/larrysinclair-0926.blogspot.com/LarrySinclair0926.com and Larry SinclairBarackObama.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Obama's only been in office a few months in a steep depression but the ideological right already sees socialism here. For a little reality check, here's a chart from Conor Clarke of government control of the economy (click the link for the details):

Do you feel safer today? Let's hope so, since you're certainly less free to travel about the Northern Hemisphere. Beginning just after midnight, every American returning from Canada, Mexico, and various island paradises now have to flash a U.S. passport to get back in the country. For the 70 percent of citizens who don't have passports, that means a minimum four to six weeks waiting time (and probably more, given the new filing rush) to legally escape the national boundaries. Better hope you weren't birthed by a midwife and have a funny-sounding surname!

No one informed Betancourt that his American citizenship was in question before – not in all the presidential elections he's voted in, not when he served in the Marines and not when he first became an emergency medical technician a decade ago. His father, a U.S. citizen, also served in the Marines.

"It's like a slap in the face," Betancourt said. "It doesn't change the way I feel or act, but I'm trying to do something as American as apple pie and go on vacation, and it feels like I've got the rug pulled out from under me."

Well, at least our country's top political leaders are totally aware of this grimly important trade of liberty for security.

Bill Clinton and George W. Bush admitted yesterday they had no idea the U.S. was implementing a new rule Monday that would require Canadians and Americans to have passports to cross the border.

The former presidents were caught off guard during a 90-minute joint appearance in Toronto when moderator Frank McKenna, the former Canadian ambassador to the U.S., spoke about how Canadians feel slighted by the new rule.

"I'll be frank with you Frank, I don't know about the passport issue," Bush told the crowd of 6,000.

"I thought we were making good progress on using a driver's licence to cross the border. What happened to the E-Z card?"

Clinton said he'd only heard about the passport requirement a day earlier, adding that in all likelihood most Americans were completely unaware of it as well. [...]

"I promise you, you have got my attention with this, so I'm going back home I'll see if there is anything else I can do," he said to cheers from the audience.

Yet another indication that our previous two presidents would have been better off reading Reason.