The Analysis Of U.S. Reindustrialization Strategy Effect

In the late1970s and80s, the United States and the other capitalist countries went through serious economic stagnation and recession and the severe retrogress of manufacturing’ status in the national economy, which has been called deindustrialization phenomenon by many American scholars. They agreed that the plight brought by deindustrialization could only be solved by revitalizing the status of manufacturing in the national economy, which can be simply called reindustrialization strategy. If we want to explain reindustrialization, we must get know well about the meaning of deindustrialization first. However, many people equals industry hollow out effect to deindustrialization. Also, industry policy and reindustrialization have been mixed up easily. So, I differentiate those concepts in this paper first before defining reindustrialization. And the definition of reindustrialization is that the progress or strategy of refounding industry and developing advanced manufacturing by developed countries or regions when they encounter the decline of their manufacturing’s status in national economy and the international market.When Obama became the president of the United States in2009, he put forward reindustrialization as his most important economic strategy, of which I think the short-term goal is to handle with unemployment and trade deficit, the long-term goal is to develop advanced manufacturing industry so as to maintain American leading position in the world, and the fundamental logic may be the inertia of the circulation of Keynesianism and Neo-liberalism. In fact, there are still few evidence to prove that the reindustrialization strategy has made its expected effect. This paper concludes four metrics of reindustrialization, which are the reduced FDI and the increase of output, employment and net export. The analysis of these four metrics made by this paper showed few obvious effect of reindustrialization. Only from2009to2010, the output and employment in manufacturing increased a little, which, however, could be the effect of economic recovery in post-crisis years. Then this paper gives four reasons to explain why the reindustrialization strategy has not reached its expected effect.In the end, this paper concluded that promoting traditional manufacturing back to motherland may violate the globalization trend. Reindustrialization strategy can only exhibit its advantages by developing advanced manufacturing.