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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...

Edge interviews Jonah Lehrer:

The paradox of modern neuroscience is that the one reality you can't describe as it is presently conceived is the only reality we'll ever know, which is the subjective first person view of things. Even if you can find the circuit of cells that gives rise to that, and you can construct a good causal demonstration that you knock out these circuit of cells, and you create a zombie; even if you do that... and I know Dennett could dismantle this argument very, very quickly ... there's still a mystery that persists, and this is the old mind-body problem, but it?"s an old problem for a reason: we don't simply feel like three pounds of meat.

"What I do support is what has been termed the responsible closure of Gitmo. Gitmo has caused us problems, there's no question about it. I oversee a region in which the existence of Gitmo has been used by the enemy against us. We have not been without missteps or mistakes in our activity since 9/11 and again Gitmo is a lingering reminder for the use of some in that regard...

I don't think we should be afraid of our values we're fighting for, what we stand for. And so indeed we need to embrace them and we need to operationalize them in how we carry out what it is we're doing on the battlefield and everywhere else...

 So one has to have some faith, I think, in the legal system. One has to have a degree of confidence that individuals that have conducted such extremist activity would indeed be found guilty in our courts of law.

When we have taken steps that have violated the Geneva Conventions, we rightly have been criticized, so as we move forward I think it's important to again live our values, to live the agreements that we have made in the international justice arena and to practice those," - general David Petraeus, conceding that the US violated the Geneva Conventions under president Bush, and pledging to remain within the laws of war in the future, as the best way to win the war on terror.

(Photo: Brendan Smialowski/Getty.)

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...

How Canadian can you get?

The Finance Minister understates the deficit by $16 billion. Do we get mad?

Nah. The guy's doing his best. Let's give him another chance.

Canadian Press:

OTTAWA - Canadians appear to be willing to cut Finance Minister Jim Flaherty a little slack over his deficit shocker.

A Canadian Press Harris-Decima poll shows few Canadians think the
finance minister should resign just because he made a $16-billion
mistake on his deficit projection.

The survey of 1,000 people finds only 28 per cent who want Flaherty to
step down, while 59 per cent think he should stay on the job.

Even among Liberal supporters, 54 per cent don't think he should lose
his position because the budget deficit has ballooned to more than $50
billion - not the $34 billion predicted in the budget four months ago.

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.

John Nance, the former FAA administrator, and now an aviation consultant to ABC News, says that there's a 50-50 chance that the missing Air France jet went down in an explosion. The story was just on ABC. They tended to downplay Nance's comments, but I have to admit, i was wondering about the possibility of terrorism as well. Obviously, it's too soon - and it's suspicious that no terrorist group is claiming credit, since they're usually not very shy about such things.