I’ve seen complaints on X that a factory worker’s single income used to be enough to raise a family on but isn’t anymore. It’s true; I grew up in those days.
The complaint generally continues that we were robbed of this by bad policy choices. But that is at best only half true.
World War II smashed almost the entire industrial capacity of the world outside the U.S., which exited with its manufacturing plant not only intact, but greatly improved by wartime capitalization. The result was that for about 30 years, the US was a price-taker in international markets. Nobody could effectively compete with us at heavy or even light manufacturing.
The profits from that advantage built Norman Rockwell’s America — lots of prosperous small towns built around factories and mills. Labor unions could bid up salaries for semi-skilled workers to historically ridiculous levels on that tide.
But it couldn’t last. Germany and Japan and England recapitalized and rebuilt themselves. The Asian tigers began to be a thing. U.S. producers facing increasing competitive pressure discovered that they had become bloated and inefficient in the years when the penalty for that mistake was minimal.
Were there bad policy choices? Absolutely. Taxes and entitlement spending exploded because all that surplus was sloshing around ready to be captured; the latter has proven politically almost impossible to undo.
When our windfall finally ended in the early 1970s, Americans were left with habits and expectations formed by the long boom. We’ve since spent 50 years trying, with occasional but only transient successes, to recreate those conditions. The technology boom of 1980 to 2001 came closest.
But the harsh reality is that we are never likely to have that kind of advantage again. Technology and capital are now too mobile for that.
Political choices have to be made within this reality. It’s one that neither popular nor elite perception has really caught up with.
Eric S. Raymond, X (the social media platform formerly known as Twitter, 2024-07-08.
March 17, 2025
QotD: Myths from Norman Rockwell’s America
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