Yesterday , I did a simple rough calculation about Basic Motors to try to get at how much manufacturing job loss one might attribute to international competition versus automation and productivity will increase. Varied commenters objected that my assumptions had been too simplistic, significantly in neglecting the domestic content in international autos and the importance of shifts within the supply chain over time.
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The odd-wanting line in this graph is the one for home consumption of autos and parts as a fraction of GDP; the line begins to drop after 2002, solely reversing in 2010. It is odd to me because a graph of US car gross sales is basically flat from 2001 to 2007 at between 16 and 17 million vehicles per year. Reading off Stuart’s graph above, the gross consumption line starts at about three.7% of GDP in 2001 and drops to around 2.eight% in 2007, so roughly a 25% drop. Looking at BEA Table 1.1.5. US GDP rose 36% during that period.
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