Only 1.2% Of American Spending Actually Ends Up In China

[mrjarrell]

That's some reassuring news. Despite the protectionist twaddle we hear from certain people and sectors, most of the money Americans spend stays right here in this country. No matter where you spend it. Even if you're buying a product stamped "made in China", a significant portion of the money spent stays right here. So, you can stop with the Buy American stuff, (as if that's even possible in this day and age) and buy what you want. You're still supporting American companies and jobs. Do yourself a favour and don't buy "Look for the union label", instead.

Only 1.2% Of American Spending Actually Ends Up In China - The Consumerist

FRBSF Economic Letter: The U.S. Content of “Made in China” (2011-25, 8/8/2011)

 

[badwolf.usmc]

One of the main reasons i buy New Balance shoes is that they still do make some of their shoes in the US.

 

[x10]

I find this hard to believe because "spending" is just part of the problem, the fact that the person who made the widget is not located here I think is the biggest part of the problem.

Plus 99.876% of statistics are wrong

 

[PistolBob]

I always try to buy American made goods. Even if they cost a little more. Buy American, Be American. I always will.

 

[Pocketman]

While I find this reassuring, the real issue is the ~$270B annual trade deficit. If China imported more American goods, the relationship would be more of a trade "partnership."

 

[ATOMonkey]

While I find this reassuring, the real issue is the ~$270B annual trade deficit. If China imported more American goods, the relationship would be more of a trade "partnership."

What is our overall trade balance with the world?

 

[Pocketman]

What is our overall trade balance with the world?

According to the Census Bureau, our trade deficit is running ~$50B per month. So in round figures, almost half of that is with China.

Foreign Trade: Data

 

[ATOMonkey]

Seems to me that we need to start making more stuff that the rest of the world wants.

 

[Pocketman]

Seems to me that we need to start making more stuff that the rest of the world wants.

 

[bobzilla]

Seems to me that we need to start making more stuff that the rest of the world wants.

Stop talking sensibly. Why do you hate america so much?

^ should be in purple.

 

[ATOMonkey]

The 64 million dollar question is why don't we make more things that the rest of the world wants?

 

[badwolf.usmc]

The 64 million dollar question is why don't we make more things that the rest of the world wants?

No really. The US is such a massive economy that we can't produce enough to meet our own wants & needs.

The US GDP is ~14.6 trillion, while the whole world combined is almost 63 trillion. That means the US economy is ~23% of the world economy by itself. The next largest is China at ~5.6 trillion, 1/3 of our economy as it presently is.

Also:
Top 12 Manufacturing Countries in 2007 at Curious Cat Investing and Economics Blog

While this is a 2008 report, the US is still the world's #1 manufacturing country.

 

[RoyalTenenbaum]

One of the main reasons i buy New Balance shoes is that they still do make some of their shoes in the US.

The ones with USA on them

 

[PistolBob]

The 64 million dollar question is why don't we make more things that the rest of the world wants?

I know, it's really pretty simple.

1. Identify a product everyone wants.
2. Find investors to lend you the capital to build your plant.
3. Find enough skilled workers to work in the plant to make the item.
4. Find enough salesmen to sell your product, and take orders.
5. Find a warehouse to store and ship from.
6. Pay off the local and federal government.

That's it.

 

[mrjarrell]

The 64 million dollar question is why don't we make more things that the rest of the world wants?

Actually, we do. We make some of the best tech on the planet and people are buying the hell out of it. Unfortunately, American labour has decided to price itself out of the market, so American companies produce these things overseas, where the market is better. The American labour movement has brainwashed American workers into thinking they're worth vastly more than they are and they've made the American workplace a hostile environment. There are some places in the US where the workers are reasonably sane, look at Toyota and the Germans in Alabama. They've kept the brainwashers out and the costs down and created an attractive environment for manufacturers. Until this becomes the norm, "American" products will continue to be outsourced.

 

[edsinger]

There are some places in the US where the workers are reasonably sane, look at Toyota and the Germans in Alabama. They've kept the brainwashers out and the costs down and created an attractive environment for manufacturers. Until this becomes the norm, "American" products will continue to be outsourced.

Dont forget some of the non-union steel companies. It always cracks me up that non-union is paid MORE than union in this case.

 

[gunman41mag]

this report from the Federal Reserve Bank of San Francisco
I call it BULL

 

[Nuke-in-Indy]

Dont forget some of the non-union steel companies. It always cracks me up that non-union is paid MORE than union in this case.

Care to ellaborate on this comment?

 

[edsinger]

Care to ellaborate on this comment?

Sure, the non union automobile workers were mentioned in a post above. I just threw in the fact that the average union steel worker in Indiana doesn't make as much as some of the non-union steel workers.

Example: Nucor/SDI

Try to get a union in one of these plants and it would not be pretty, they don't want a paycut.

 

[Nuke-in-Indy]

Sure, the non union automobile workers were mentioned in a post above. I just threw in the fact that the average union steel worker in Indiana doesn't make as much as some of the non-union steel workers.

Example: Nucor/SDI

Try to get a union in one of these plants and it would not be pretty, they don't want a paycut.

Ah, I see your point now. I would imagine that the NUCOR/SDI opinion on unions probably has something to do with their desire to be profitable.