> Researchers are investigating how the United States can become more competitive in the manufacturing industry in the age of artificial intelligence. > Manufacturing employment has fallen in both countries, yet in Germany, manufacturing's value added has stayed around 22 percent in the last 20 years. So Germany has done well even before the age of AI . But are they well prepared for the AI disruption? Because curren…
It's a bizarre premise, because US productivity has outpaced both the EU and Germany over the last 25 years. In 1995-1996, US and German GDP per capita were almost equal, at $30,000 to $31,000. Today the US is about 40% higher. US manufacturing has grown substantially over that time. The vast gains in productivity are precisely the cause of the employment plunge in manufacturing. Real manufacturing output is up 78% s…
Likewise GDP (even PPP) does not matter if it is distributed highly unequally. You get a handful of people with huge economic power, that's it.
Albeit in the case of Germany you're somewhat right (protectionism mostly designed to force manufacturing to happen locally), US productivity has not brought improved living standards where it should have.