07-24-2009, 02:35 PM
Dustie Wrote:My two contributions to this thread are:
1. Supply and demand is alive and well. Everything you mentioned is simply factor involved in arriving at aggregate demand. (It all really comes back to supply and demand at a certain price level)
2. The US still does manufacture things. We still manufacture more then any other nation in the world (it's just not the percent of GDP that it once was).
Quote:Manufacturing, value added > current US$ (most recent) by country
Rank Countries Amount Date
# 1 United States: 1,545,400,000,000 $ 2004
# 2 Japan: 961,930,900,000 $ 2004
# 3 China: 748,078,800,000 $ 2005
# 4 Germany: 565,520,200,000 $ 2004
# 5 Italy: 291,326,600,000 $ 2005
Full data here for 2004:
http://www.nationmaster.com/graph/ind_ma...current-us
The data above includes the manufacturing of raw goods. For purposes of this discussion manufacturing would be the assembly of finished goods that impact the market.
In other words cranking out wood to send to China to create furniture is still giving up supply control that used to exist 50 years ago.
Vllad