After every previous recession manufacturing in this country accelerated [arrows]. The chart also shows the type and level of US economic activity changed at the end of the last century. American manufacturing jobs peaked in 1980 at about 19 million. That is why everything you now buy at Wal-Mart is made in China. The United States is a FIRE economy: finance, insurance, real estate and you could add healthcare. It was manufacturing that provided well paid middle class jobs, but that source of middle class income has disappeared overseas replaced by low wage rent-a-body jobs that are often temporary. This chart shows one effect of declining or no wages, less consumer spending:
Retail sales when adjusted for inflation and population [box inset] are at the same level of twelve years ago. Another effect is the increasing amount of government transfers to the 99% that is finding it increasing difficult to support itself by wage labor:
