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Bottom Line: The declining share of manufacturing’s contribution to GDP reflects a global trend as the entire world moves increasingly towards a more services-intensive global economy. When people complain that “nothing is made here anymore,” it’s not really true that somebody else is manufacturing the goods that we used to make in America. The reality is that because of ongoing gains in productivity and lower prices, we (and others around the world) just don’t need to spend as much on manufactured goods any more in relation to the overall size of the economy. And we’re all better off because of that global “decline in manufacturing.”

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