The bad news is that America hasn’t invested much in manufacturing during the past 20 years. The worse news is that most of the manufacturing capital equipment that America uses came from imports. Not only does the US have a US$1 trillion trade deficit, but about $300 billion of that deficit comes from imports of capital goods, namely goods that make other goods. Federal subsidies for chip fabrication plants and green energy have recently bulked up the numbers for factory construction, but orders for capital equipment remain depressed. The subsidy-driven increases in factory building help explain an enormous surge in ... (full story)