07-24-2009, 02:53 PM
Vllad Wrote: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
That makes the conversation pretty tough. Value added is the best measure since its the net value add of all points in the manufacturing processes. Also, I posted this to disprove the continual claim I see that the US doesn't manufacture anything anymore. Simply not true.
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison