Yesterday , I did a simple tough calculation about Common Motors to try to get at how a lot manufacturing job loss one could attribute to international competition versus automation and productivity increases. Numerous commenters objected that my assumptions have been too simplistic, significantly in neglecting the domestic content in overseas autos and the significance of shifts in the provide chain over time.
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The odd-trying line on this graph is the one for home consumption of autos and elements as a fraction of GDP; the line starts to drop after 2002, solely reversing in 2010. It’s odd to me because a graph of US vehicle sales is actually flat from 2001 to 2007 at between sixteen and 17 million vehicles per 12 months. Reading off Stuart’s graph above, the gross consumption line begins at about three.7% of GDP in 2001 and drops to round 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.