By Here is something I have a very hard time believing:
Politicians and pundits talk often talk of the undue sway Chinese businesses have over American consumers without the hard numbers to back up claims. So Galina Hale and Bart Hobijn, two economists from the Federal Reserve Bank of San Francisco, have stepped in to do the mathematical heavy-lifting. What they’ve found is that only 2.7 percent of U.S. consumers purchases have the “Made in China” label.
“Although globalization is widely recognized these days, the U.S. economy actually remains relatively closed,” the authors write in a recent report. 88.5 percent of Americans’ consumer spending is on things made in the U.S. In the U.S. market, China only had the edge over domestic businesses in the nondurable goods category that includes clothing and shoes. It also, unsurprisingly, does well in the U.S. in the groups of goods that include electronics and household appliances. [Atlantic Wire]
I would have to see a complete run down of statistics to believe this, which is not provided by the article. I am wondering if whoever compiled this included items at the grocery store as part of their Made in the USA stats? Did they include things like buying insurance as something US consumers buy as Made in the USA? I can see ways how someone can manipulate the numbers to get that 2.7% Made In China number, but it wouldn’t be honest.
She hasn’t seen...
6:26 pm on August 14th, 2011 1
Why is it dishonest? You’re want them to count paperclips but not cars? That would be dishonest.
8:15 pm on August 14th, 2011 2
“88.5 percent of Americans’ consumer spending is on things made in the U.S.”
Hmmm…
Let’s think.
My first thought was…
Thirty to fifty percent of “consumer” spending is for housing. “Housing” is Made in the USA.
Sure, the drywall, wiring, light switches, carpet, etc., is not… but that’s not consumer spending, is it?
Then you have energy… electricity, gas, etc. Sure, oil is imported… but the electricity and gasoline are Made in the USA.
You see where this is going.
But a quick check on the Internet says that the total trade deficit compared to GDP is around 5%… and China accounts for 25% of this… most of the rest is oil.
This means just over 1% of the GDP involves money going to China… maybe a full 1.5% after exports are subtracted.
So, even when considering 2nd and 3rd order manufacturing, 88.5% kinda rings true considering the percentages of money people spend for energy compared to food and rent… and the reality that a good chunk of the population doesn’t have a great deal of money left over at the end of the month to buy a lot
The numbers COULD be true.
The China Scare does have some similarities to the Japan Scare of the 80s and the Arab Scare of the 70s.
8:38 pm on August 14th, 2011 3
The real China scare is their building and housing bubble.
12:09 am on August 15th, 2011 4
#2,
Trade between Canada and the US is greater than between any two other countries in the world.
4:03 am on August 15th, 2011 5
Interesting.
8:05 am on August 16th, 2011 6
#5,
Interesting? I thought you say, “I knew it. Canadians are commies. That’s why their flag is red!!!!!”
8:52 am on August 16th, 2011 7
Ah ha! The Maple Leaf and Sickle
8:54 am on August 16th, 2011 8
Da Tovarash, eh?
10:34 am on August 16th, 2011 9
#8,
The only Russian I know is “На Здоровие”, I swear. I learned that one from a retired Soviet Air Force colonel was fought in the Afghan War in the early 80′s. Whoops, did I say that out loud?
PS. No bull about the Soviet colonel. Long story, but it’s true. Those guys, by the way, do drink like fish.
11:34 am on August 16th, 2011 10
Cars “made in America” ought to say “Assembled in America” because the plastics and electronics are mostly imported…
I sat with the “Congressional Delegation” from Novosibirsk at the Shilla Hotel a few nights back in 1996… They drank more per hour than I did per week…
Nicer guys than the ones running GM at that time, though…