Listened to an audio interview with Dr. Donald Boudreax of GMU today. One huge statistic they mentioned jumped out at me. 2.7%.
The San Francisco Fed recently released some numbers on imports and consumption from China.
Fiction Made in America: “According to an August 2011 report by the San Francisco Fed, the percent of Americans’ personal consumption expenditures used to buy Chinese-made goods and services in 2010 was 2.7 percent. And if we exclude expenditures on food and energy, the percent of our 2010 personal consumption expenditures spent on goods and services from China rises to only 3.1 percent. In contrast, the percent of Americans’ personal consumption expenditures spent on goods and services made in America in 2010 was 88.5 (and 88.0 percent if we look at personal consumption expenditures excluding those on food and energy).”
Directly from the FRBSF.
FRBSF Economic Letter: The U.S. Content of “Made in China” (2011-25, 8/8/2011): Goods and services from China accounted for only 2.7% of U.S. personal consumption expenditures in 2010, of which less than half reflected the actual costs of Chinese imports. The rest went to U.S. businesses and workers transporting, selling, and marketing goods carrying the “Made in China” label. Although the fraction is higher when the imported content of goods made in the United States is considered, Chinese imports still make up only a small share of total U.S. consumer spending.