Yesterday , I did a easy tough calculation about Basic Motors to try to get at how a lot manufacturing job loss one could attribute to foreign competitors versus automation and productivity will increase. Varied commenters objected that my assumptions were too simplistic, notably in neglecting the home content in foreign autos and the importance of shifts in the provide chain over time.
The odd-wanting line on this graph is the one for domestic consumption of autos and components as a fraction of GDP; the road starts to drop after 2002, solely reversing in 2010. It’s odd to me because a graph of US vehicle gross sales is basically flat from 2001 to 2007 at between 16 and 17 million vehicles per yr. Studying off Stuart’s graph above, the gross consumption line begins at about three.7% of GDP in 2001 and drops to around 2.eight% in 2007, so roughly a 25% drop. Taking a look at BEA Table 1.1.5. US GDP rose 36% during that interval.
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