Here's something that should revise a lot of clichés, though it probably won't: less than 3% of U.S. consumption expenditures are on goods made in China. Almost 90% are made in the USA. Of course, the domestic total is boosted by services-but even durable goods are 12% China, 67% U.S. And less than half the value of Chinese imports go to China-55% of the money spent on "Chinese" goods represent processing and other services (like distribution and retailing) provided in the U.S.
This info comes from a new paper by Galina Hale and Bart Hobijn of the San Francisco Fed. ... Doug
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I was going to write about this when it was posted on Doug's blog. Maybe I did. There has to be something wrong with the fed report... Either that or I live almost entirely within that 12 percent world.
I can think of other possibilities. There is no question that China produces almost every kind of tool I've tried to find made in USA. Last night I finally found one line of Mac Tools that is `made in USA', their angled combination wrenches.
However, it doesn't follow that hand and power tools are a major US consumer item. In fact, since the USer's don't know how to use tools, it would stand to reason they don't buy them. So China has a giant share of a small market?
It just so happens that market and the means to produce infrastructure are nearly the same or overlap a great deal.
Maybe that's the answer.
CG