Is this another case of government overreach? Or, should we consider this a valid concept? I can argue the case both ways (yes, I was on debate teams for many years)- but I really am torn over this issue. Oh, yeah, that’s right. You can’t read my mind. So, let me explain the issues.
How do we decide if a company is a manufacturer or not? Don’t jump the gun. Hear me out.
What do we consider a company that has designed a neat new product, but instead of making it, farms out the production of every single component- as well as the assembly of the final object for sale? Yes, it makes nothing- but everything made and sold under its name must meet its specifications (and, hopefully, quality assurance). Now, if this change goes through, instead of being wholesalers, such firms will be considered manufacturers.
And, if we do accept this change, what happens to all those companies that don’t farm out their production and really make what they sell?
The government wants this change because it will seem as if manufacturing is not only gaining back stature in the US, but is actually a large component of our economy. It will change the producer inflation pricing, it will change our jobs reports, it will make Silicon Valley a hotbed of manufacturing instead of a cerebral village. It will mean that overnight we have grown 2,000,000 manufacturing workers- without changing one thing about our economy.
The government believes this change is necessary because our economic indicators are not truly accounting for globalization. But, changing this definition means that we can’t use historical comparisons, either.
So, I am torn. If we make this change, we will have a whole bunch of folks labeled as manufacturers that make ZERO goods. But, they are responsible for the sale of a ton of finished products that would never be available to us without their efforts.
If you have opinions on this matter, you should contact Maureen Doherty, the Director of the Bureau of Labor Statistics at the US Labor Department. She is the one heading up the committee (five federal agencies) that is considering this change in our nomenclature.
I still have not decided what to write.
Playing with numbers just before another election, With a 2,000,000 increase in manufacture jobs, and no increase in the unemployment, it is going to appear as great progress during the present 4 year term. And all with about 2 cents worth of ink needed to sign with about 12 ink pens….wow… progress is wonderful.
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Actually, this change won’t occur (if it does at all) until after the next Presidential election. But, that does not exonerate nor define it as a political change, Chef William.
I wonder how we will compare our current numbers with historical situations.