Yesterday , I did a simple rough calculation about General Motors to attempt to get at how a lot manufacturing job loss one might attribute to overseas competitors versus automation and productivity will increase. Numerous commenters objected that my assumptions have been too simplistic, particularly in neglecting the home content material in international autos and the importance of shifts in the provide chain over time.
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The odd-looking line in this graph is the one for domestic consumption of autos and components as a fraction of GDP; the road starts to drop after 2002, only reversing in 2010. It is odd to me as a result of a graph of US car gross sales is basically flat from 2001 to 2007 at between 16 and 17 million autos per yr. Studying off Stuart’s graph above, the gross consumption line starts at about 3.7% 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% throughout that period.
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