When measured accurately, real manufacturing output declined by 11 percent in the last decade, at a time when the overall economy grew by more than 11 percent.

Manufacturing lost jobs because manufacturing lost output, and it lost output because its ability to compete in global markets-some manipulated by egregious foreign mercantilist policies, others supported by better national competitiveness policies, like lower corporate tax rates-declined significantly. In 2010, 13 of the 19 U.S. manufacturing sectors (employing 55 percent of manufacturing workers) were producing less than they there were in 2000 in terms of inflation-adjusted output. Overall, U.S. manufacturing output actually fell by 11 percent during a period when GDP increased by 17 percent.