Yesterday , I did a easy rough calculation about Basic Motors to try to get at how a lot manufacturing job loss one could attribute to international competitors versus automation and productiveness increases. Various commenters objected that my assumptions have been too simplistic, significantly in neglecting the domestic content in foreign autos and the importance of shifts in the provide chain over time.
You possibly can see the rise in imports from a lot lower than 1% in the Nineteen Sixties to about 2% of US GDP within the mid 2000s (until the nice recession hit). The other attention-grabbing factor is that consumption of autos (as a fraction of the financial system) began a severe decline within the early 2000s. That is going to complicate the analysis which I will take up once more in the subsequent submit.
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