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. Various commenters objected that my assumptions have been too simplistic, particularly in neglecting the home content in international autos and the importance of shifts in the supply chain over time.
You possibly can see the rise in imports from a lot lower than 1% within the 1960s to about 2% of US GDP within the mid 2000s (till the nice recession hit). The opposite interesting factor is that consumption of autos (as a fraction of the financial system) began a severe decline within the early 2000s. That’s going to complicate the analysis which I’ll take up again in the next submit.
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