Yesterday , I did a easy rough calculation about General Motors to attempt to get at how much manufacturing job loss one may attribute to international competition versus automation and productiveness increases. Varied commenters objected that my assumptions had been too simplistic, significantly in neglecting the domestic content in foreign autos and the importance of shifts within the provide chain over time.
You may see the rise in imports from a lot less than 1% in the 1960s to about 2% of US GDP within the mid 2000s (until the good recession hit). The other attention-grabbing issue is that consumption of autos (as a fraction of the financial system) began a serious decline in the early 2000s. That’s going to complicate the evaluation which I’ll take up once more within the subsequent submit.
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