Yesterday , I did a easy tough calculation about Normal Motors to attempt to get at how much manufacturing job loss one could attribute to international competition versus automation and productivity will increase. Various commenters objected that my assumptions were too simplistic, significantly in neglecting the home content in overseas autos and the importance of shifts within the supply chain over time.
Passenger car sales plummeted once more in March, dragging U.S. auto sales to their third straight month-to-month decline, a robust indication that years of gross sales growth have come to an finish. As cars remain a point of battle, Detroit pushes to sell pickups in a market long skeptical of them, in an effort to faucet a Chinese language style for American manufacturers.
You may see the rise in imports from much lower than 1% in the Sixties to about 2% of US GDP in the mid 2000s (till the good recession hit). The opposite interesting issue is that consumption of autos (as a fraction of the economy) began a severe decline within the early 2000s. That’s going to complicate the analysis which I’ll take up again within the next post.
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