Saturday, April 26, 2008

Manufacturing as % of GDP: U.S./World

This chart is one tool to measure U.S. manufacturing competitiveness, and also the valuation of the dollar. This show that U.S. manufacturing is losing competitiveness, and the dollar should therefore be devalued.

It's a simple calculation. Calculate manufacturing as a % of GDP for the U.S. and the World. The chart is a ratio between the two.

For example, if manufacturing as a % of GDP is 16 % for the U.S. , and 20 % for the world, the ratio would be .80

The last sharp decline happened just before the Plaza Accord.

Source: United Nations Statistical Division

Original Post : 1

% of World GDP, By Country or Region

This chart illustrates that the rise of "BRIC" is really more about the rise of China. But that rise has come more at the expense of Japan than anyone else.

I personally believe that Washington is pushing the BRIC concept, and the G20 in general, as a strategic counterbalance to Europe. The Euro represents the only real currency threat to the dollar at the moment.


Source: United Nations Statistical Division - National Accounts
Spreadsheet: 1

Average Hourly Earnings

Percent of U.S. Corporate Profits from " Rest of World"

The U.S. consumer, and therefore worker, seems to be becoming less and less important for U.S. based companies.