Thursday, December 22, 2011

China just surpassed the US in terms of manufacturing output. This MUST have been at our expense, right?? See this graph and you tell me, please...

China just surpassed the US in terms of the dollar value of manufacturing output/finished goods, i.e. "stuff").  China is the BLUE line and the US is the RED line.  The US trend line has been remarkably consistent over time.  Post-recession, we are recovering and it looks like we are going to be back on that long term rend. (For my math friends out there, if you were to draw a US trend line, would it be relatively constant over time, or has it fallen since 2000--I am just eye-balling it. Not very scientific. :) )  Graph  from CARPE DIEM
Source: Carpe Diem
My question when I look at this graph: If China had not industrialized as it has, would OUR manufacturing output (I am NOT including manufacturing employment in this discussion)  have increased MORE than what our historical trend in manufacturing shows we could do, OR would it be LESS? If so, how and why?
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