No Comment — March 20, 2009, 9:40 am

Global Collapse in Manufacturing

More seriously bad news. The New York Times reports that around the globe, manufacturing is in a freefall:

That manufacturing is in decline is hardly surprising, but the depth and speed of the plunge are striking and, most worrisome for economists, a self-reinforcing trend not unlike the cascading bust that led to the Great Depression. In Europe, for example, where manufacturing accounts for nearly a fifth of gross domestic product, industrial production is down 12 percent from a year ago. In Brazil, it has fallen 15 percent; in Taiwan, a staggering 43 percent. Even in China, which has become the workshop of the world, production growth has slowed, with exports falling more than 25 percent and millions of factory workers being laid off.

In the United States, until recently a relative bright spot for manufacturing despite the steady erosion of blue-collar jobs, industrial output fell 11 percent in February from a year ago, according to statistics released Monday by the Federal Reserve. “Manufacturing has fallen off the cliff, and it’s certainly the biggest decline since the Second World War,” said Dirk Schumacher, senior European economist with Goldman Sachs in Frankfurt.

The pattern of manufacturing and trade ominously recalls how the financial crisis of 1929 grew into the Great Depression: tightening credit and consumer fear reduced demand for manufactured goods in one country after another, creating a downward spiral that reduced global trade.

Time this afternoon for a depression cocktail.

Share
Single Page

More from Scott Horton:

Context, No Comment August 28, 2015, 12:16 pm

Beltway Secrecy

In five easy lessons

From the April 2015 issue

Company Men

Torture, treachery, and the CIA

Six Questions October 18, 2014, 8:00 pm

The APA Grapples with Its Torture Demons: Six Questions for Nathaniel Raymond

Nathaniel Raymond on CIA interrogation techniques.

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

February 2016

Isn’t It Romantic?

= Subscribers only.
Sign in here.
Subscribe here.

The Trusted Traveler

= Subscribers only.
Sign in here.
Subscribe here.

The Trouble with Iowa

= Subscribers only.
Sign in here.
Subscribe here.

The Queen and I

= Subscribers only.
Sign in here.
Subscribe here.

Disunified Front

= Subscribers only.
Sign in here.
Subscribe here.

We Don’t Have Rights, But We Are Alive

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
Isn’t It Romantic?·

= Subscribers only.
Sign in here.
Subscribe here.

“He had paid for much of her schooling, something he cannot help but mention, since the aftermath of any failed relationship brings an ungenerous and impossible impulse to claw back one’s misspent resources.”
Illustration by Shonagh Rae
Article
The Trouble with Iowa·

= Subscribers only.
Sign in here.
Subscribe here.

“It seems to defy reason that this anachronistic farm state — a demographic outlier, with no major cities and just 3 million people, nine out of ten of them white — should play such an outsized role in American politics.”
Photograph (detail) © Justin Sullivan/Getty Images
Article
Rule, Britannica·

= Subscribers only.
Sign in here.
Subscribe here.

“This is the strange magic of an arrangement of all the world’s knowledge in alphabetical order: any search for anything passes through things that have nothing in common with it but an initial letter.”
Artwork by Brian Dettmer. Courtesy the artist and P.P.O.W., New York City.
Article
The Queen and I·

= Subscribers only.
Sign in here.
Subscribe here.

“Buckingham Palace is a theater in need of renovation. There is something pathetic about a fiercely vacuumed throne room. The plants are tired. Plastic is nailed to walls and mirrors. The ballroom is set for a ghostly banquet. Everyone is whispering, for we are in a mad kind of church. A child weeps.”
Photograph (detail) © Martin Parr/Magnum Photos
Article
We Don’t Have Rights, But We Are Alive·

= Subscribers only.
Sign in here.
Subscribe here.

“If I really wanted to learn about the Islamic State, Hassan told me, I ought to speak to his friend Samir, a young gay soldier in the Syrian Army who’d been fighting jihadis intermittently for the past four years.”
Photograph (detail) by Anwar Amro/AFP/Getty

Estimated percentage of New Hampshire’s bat population that died in 2010:

65

A horticulturalist in Florida announced a new low-carb potato.

In Turlock, California, nearly 3,500 samples of bull semen were stolen from the back of a truck.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Two Christmas Mornings of the Great War

By

Civilization masks us with a screen, from ourselves and from one another, with thin depth of unreality. We habitually live — do we not? — in a world self-created, half established, of false values arbitrarily upheld, largely inspired by misconception, misapprehension, wrong perspective, and defective proportion, misapplication.

Subscribe Today