Factory Growth Is `Hardly Profound': Tonelson

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July 3 (Bloomberg) -- Bloomberg View Columnist Alan Tonelson discusses U.S. Manufacturing and trade deficit Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

The only manufacturing renaissance out there is one that exist in the imaginations of president obama and a series of manufacturing cheerleaders who either don't know about the most authoritative data we have or who don't want to know about it.

We just got another reality check that shows not only the manufacturing trade deficit rose in march from its levels in april, but it is running ahead of last year's pace which happened to be an all-time record.

That doesn't tell me u.s. manufacturing is becoming more competitive, it tells me and should tell everyone else that it's becoming less competitive.

That is not a renaissance.

What are the most authoritative data and what do they show?

There is no shortage of them.

We have seen u.s. manufacturing that has generated a very impressive cyclical comeback back from a deep recessionary dive.

Five years after the lehman brothers generated the financial crisis, u.s. manufacturing has not returned to the manufacturing levels it had at the end of 2007. we have manufacturing trade deficits that record highs and a rebound that has about stalled out.

Even when we talk about manufacturing job creation, which didn't once again enjoy a nice ounce back from a very deep recessionary dive, it has only been a third of the pace of overall u.s. job creation.

What is the best prescription for this?

The president is intent on re-creating this economy that depends on building and creating rather than consuming.

Lots of domestic reforms are obviously needed on the tax front.

But all of those domestic reforms can be easily arbitrage by multinational companies due to a trade policy that keeps exposing domestic manufacturing too often very cheap and government-subsidized competition.

Unless that changes are medically, there will not be a renaissance in our lifetimes.

This text has been automatically generated. It may not be 100% accurate.


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