We Moved from a Manufacturing to a Service Economy under Reagan-Bush-Clinton-Bush

A statement released last week by Obama administration Council of Economic Advisers Chair Christina Romer warns that when it comes to the economy we are very far from being OK. Romer put out a statement concerned that many “observers” are approaching the high unemployment rates in the country without the appropriate sense of urgency. Romer says the unemployment remains high because the economy is producing dramatically below its capacity and the tools and knowledge are available to counteract economic shortfalls and they should be used aggressively. Let me add a few things to Christina Romer's observation. About 25 percent of all profits being generated in our economy right now are in the financial services sector - the billions in profits and bonuses going to a few thousand banksters, mostly on Wall Street. Historically this was a tiny slice of our economy, because banks don't actually manufacture any product that adds value to our economy. Additionally, since we moved from a manufacturing to a service economy under Reagan-Bush-Clinton-Bush we've seen manufacturing fall from about a quarter of our economy to only 11 percent of it. That means we no longer make anything of value here. Without making things, we don't create true wealth - we just move money around. You wash my car, and I'll mow your law - a so-called service economy - leads to economic disintegration over time, as eventually the car will fall apart and the lawn needs to be re-seeded. We need to reject Reaganonomics and Clintonomics, accept Bill Clinton at his word that he was wrong to listen to Rubin and Sommers, and go back to an economy that works. And roll back the Reagan tax cuts as a starting point.


willbd's picture
willbd 9 years 50 weeks ago

I read this opinion piece from our local paper. It is spot on.


Recession’s roots have been digging deeper for years

I can’t help but feel this current recession has been five decades or so in the making, as major American corporations have slowly, but surely, swallowed more and more power in this country.

While mass layoffs have only recently taken center-stage, the art of downsizing has long been the preferred brushstroke of increasing “profits,” not just in the manufacturing industry with jobs being shipped to “developing” countries, but also stretching out into retail, the media, banking, technology and elsewhere, as executives trim payroll with the nonchalance of clipping an extra leaf or two from a rhododendron

Read the rest at the link above.

Jennifer Aument's picture
Jennifer Aument 9 years 50 weeks ago

I'm encouraged to hear the Obama administration talking about jobs. I buy products "Made in the USA" whenever possible, they're just impossible to find. A perfect example, I went to Whole Foods yesterday (in Sonoma County) to buy some honey only to find that most of the honey on the shelf was from India. Honey from India here in Sonoma County? This is insane!

thomhartmann's picture
thomhartmann 9 years 50 weeks ago

Thanks for the very cogent note, Jennifer - good on ya! And thanks for using your real name; I wish more would...


Denica_Cassandra's picture
Denica_Cassandra 9 years 50 weeks ago

I'm sick of Obama already- I voted for him and now my parents may lose their home to a predatory ARM loan. They have tried to get help for the last year from his "HAMP" program - it is non sense, and simply a lie to sound like there is action. My parents even had the Treasury Dept. claim that their case was closed, even as Boxer's office was telling them that they were going to help. At least with Bush you knew the pitchfork was coming. Why all this insane coddling of the weak Democrats from our side? Whoohoo I have to buy insurance from a criminal...what a victory...Wait What? The Banks inflate the market, tell people that it's going up, "trust me I'm a professional"...then bet it's going to fail (As some most likely TRIED to crash it). Power plants, clean coal and stealing Mom's house. You could say I am far from impressed. With Democrats like these..... ? And Advisors? What did they say?--Ya, let's give them billions to throw around, a tax rebate, ignore offshore subsidiaries and go after Grandma in Vermont. America the Beautiful.

Joseph.D's picture
Joseph.D 9 years 49 weeks ago

I think Obama wants more jobs to fail. I believe he doesn't want a manufacturing industry. It certainly seems that his policies and new laws are mostly going to take effect after he leaves office, making it seem that the failures will be the fault of the new president, as the housing crash was blamed on republicans when it was the democrats who made the legislation creating the problem. casino online = I love this casino online because the crap tables provide so much casino action and the progressive slots are just the best around.

Is Mad King Trump Deciding Which States Will Live and Which States Will Die?

Thom plus logo Mad king Donald has gone full Joe Stalin in the last week or so. He is helping his friends and punishing his enemies, and using the lives of hundreds of millions of Americans to do it. People are dying and more will die because of it.

Latest Headlines

Who rejected United States-North Korea peace talks?

There were conflicting reports on Sunday regarding a recent proposal for United States-North Korea peace talks which was allegedly made before North Korea"s recent nuclear test

U.K. Pound Falls As Markets Get Brexit Jitters

Bloomberg said on Monday the pound had sustained its biggest fall against the dollar in 11 months

Clinton: I'll defend Israel but push for 'two-state solution

Hillary Clinton believes both Republican candidates Donald Trump and Ted Cruz "missed the mark" with their approach to the Israel-Palestinian Arab conflict
From Screwed:
"Hartmann speaks with the straight talking clarity and brilliance of a modern day Tom Paine as he exposes the intentional and systematic destruction of America’s middle class by an alliance of political con artists and outlines a program to restore it. This is Hartmann at his best. Essential reading for those interested in restoring the institution that made America the envy of the world."
David C. Korten, author of The Great Turning and When Corporations Rule the World
From Cracking the Code:
"In Cracking the Code, Thom Hartmann, America’s most popular, informed, and articulate progressive talk show host and political analyst, tells us what makes humans vulnerable to unscrupulous propagandists and what we can do about it. It is essential reading for all Americans who are fed up with right-wing extremists manipulating our minds and politics to promote agendas contrary to our core values and interests."
David C. Korten, author of The Great Turning: From Empire to Earth Community and When Corporations Rule the World and board chair of YES! magazine
From Screwed:
"The powers that be are running roughshod over the powers that OUGHT to be. Hartmann tells us what went wrong — and what you and I can do to help set American right again."
Jim Hightower, National Radio Commentator, Writer, Public Speaker, and author of the bestselling Thieves in High Places