[lbo-talk] GDP digest

[Doug Henwood]

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