QandO: That manufacturing "crisis"

March 15, 2004

That manufacturing "crisis"
Posted by Jon Henke

You know that manufacturing sector that John Kerry keeps promising to "restore and revitalize"? The manufacturing sector that John Kerry tells us is in "crisis"? Well, it turns out it's not exactly limping along, after all....

U.S. industrial output grew by a stronger-than-expected 0.7 percent in February, as American firms operated at their fastest pace since August 2001, the Federal Reserve said in a report on Monday.

February's gain in production was larger than Wall Street analysts' expectations for a 0.4 percent increase. Capacity utilization, which measures how much productive capacity is in use, rose to 76.6 percent from 76.1 percent in January.

Factory production, which makes up more than four-fifths of overall industrial production, posted a 1.0 percent rise in February. Manufacturing capacity in use increased to 75.2 percent, its highest level since June 2001.

Kerry keeps criticizing manufacturing job losses, while ignoring the fact that the actual manufacturing industry is increasingly more productive. He's not recommending improvements in the manufacturing sector....he's recommending a subsidy program for inefficient workers. Cut through the political nonsense, and that's all that's left.

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