• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Free Trade Fact of the Day

    Debunking myths about the supposed harm free trade inflicts on U.S. manufacturing, Cato Institute’s Daniel Ikenson notes:

    While the rest of U.S. manufacturing has recovered, Michigan’s manufacturing economy remains stagnant. Real GDP growth between 2005 and 2006 in Michigan ranked dead last among the 50 states. Meager manufacturing value-added growth contributed only 0.05 percentage points to what was a net, contraction of the state’s economy to the tune of -0.5 percent. Nationwide, the contribution of manufacturing was .41 percentage points to an overall GDP growth rate of 3.4 percent. Had Michigan’s manufacturing sector been able to contribute as much as neighboring Indiana’s manufacturing sector did to its overall economy, Michigan’s economy would have actually grown—by 0.3 percent.

    The strength of manufacturing outside of Michigan is strong evidence that unfair trade and the administration’s allegedly lax attitude toward it are not to blame for Michigan’s problems. Manufacturing’s woes in that state likely have more to do with the relatively high level of labor force unionization, restrictive work rules, and state laws and regulations that deter investment and business formation there.

    Posted in International [slideshow_deploy]

    Comments are closed.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.