Yesterday , I did a simple rough calculation about Basic Motors to try to get at how a lot manufacturing job loss one might attribute to international competition versus automation and productiveness increases. Varied commenters objected that my assumptions have been too simplistic, significantly in neglecting the domestic content material in international autos and the significance of shifts within the supply chain over time.
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You may see the rise in imports from much lower than 1% in the 1960s to about 2% of US GDP within the mid 2000s (until the good recession hit). The other attention-grabbing factor is that consumption of autos (as a fraction of the financial system) started a critical decline in the early 2000s. That’s going to complicate the analysis which I’ll take up again in the subsequent submit.