The conventional wisdom is that the United States no longer produces much. The notion that globalization has dealt a fatal blow to the U.S. manufacturing sector is a widespread one. It has become common to hear people declare that "everything is made in China!" Not only do most believe the United States is no longer the manufacturing giant it once was, but they also think it has fallen behind emerging countries that are set to usurp the United States' once-secure lead.

The impression that the United States is no longer on top of the global manufacturing game is reasserted over and over by our day-to-day shopping experiences. Clothes, electronics, toys, and household goods are likely to be made outside the country, and yes, probably in China. We can't be blamed for thinking the United States no longer produces anything useful. However, our daily experience tells us only one side of the story. After all, most of us are never in the market for a communication satellite or an aircraft carrier, big ticket items that are very likely to be made in America. The United States may not be making many of our $20 toys, but it's certainly manufacturing our planes.

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