On Dec 1, 2007, at 9:13 AM, Shane Taylor wrote:
> I haven't seen them posted here before, but James
> Hamilton writes succinct and relevant digests of the
> monthly releases of quarterly GDP:
>
> http://www.econbrowser.com/archives/2007/11/new_gdp_figures.html
He notes the contribution of exports. So-called domestic absorption - demand from U.S. sources, defined as GDP less exports plus imports (since exports are an addition to, and imports a subtraction from GDP) has been running well behind GDP growth for the last year or so. I'm guessing that trend will continue, as consumption and housing investment are squeezed. It's something of a structural adjustment program, which will help get the U.S. international accounts closer to balance.
Of course the question remains do we make enough stuff that other people want to buy - enough to sustain the growth in exports?
Doug