Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Buy American? An Update.
Old 08-13-2011, 07:29 PM   #1
Recycles dryer sheets
Join Date: Sep 2007
Posts: 381
Buy American? An Update.

FRBSF Economic Letter: The U.S. Content of “Made in China” (2011-25, 8/8/2011)

What do you think?

Disappointed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-14-2011, 10:41 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 16,427
Certainly not what I expected (have not dug into the methodology though).


personal consumption expenditures (PCE)

Figure 2 shows the share of U.S. PCE based on where goods were produced, taking into account intermediate goods production, and the domestic and foreign content of imports. Of the 2.7% of U.S. consumer purchases going to goods labeled “Made in China,” only 1.2% actually represents China-produced content. If we take into account imported intermediate goods, about 13.9% of U.S. consumer spending is attributable to imports, including 1.9% imported from China.
But, I guess if you think about the personal budget, a lot is housing, food, property tax, insurance, utilities. So maybe all those "made in China" labels don't add to as much as we think?

I recall reading that Apple makes a lot more money on an iPod than China does.

Thanks for posting, very interesting.


ERD50 is offline   Reply With Quote
Old 08-14-2011, 03:58 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
Join Date: Oct 2006
Posts: 7,427
Originally Posted by Disappointed View Post

I think that is really quite a remarkable statistic that China accounts for only 2.7% of all consumer spending. I'd be interested in seeing some other research on the subject.

I was watching a CNBC special on supermarkets, which talked a lot about Whole Foods and Walmart. (obviously two ends of the supermarket spectrum.) I was marveling at how efficient both companies were.

All the rhetoric about how the US doesn't make anything anymore and we are D00Med, ignores our real strengths in agriculture, logistics, merchandising, and marketing. Even Europeans who walk into a good American supermarket for the first time, are often shocked by the wide variety of products and generally low prices we have. Folks from the rest of the world are even more awed.

I was looking at pictures of all the food aid piled up in Mogadishu, and than seeing all the horrible famine pictures, and I reflected that simply making a lot of stuff isn't enough. You also have to get the stuff to the people in a timely manner, and US companies are awfully good at this which is a valuable service.
clifp is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Buy American? winger Other topics 43 08-15-2011 05:12 PM
Should I buy a second car? mickeyd Other topics 40 07-12-2011 08:10 PM
Hi I'm an Acupuncturist (53 yo) Should i buy a rental vacation home? daibai Hi, I am... 10 07-10-2011 10:52 AM
Buy individual shares or open a mutual fund for minor? 01drummer FIRE and Money 1 06-30-2011 10:26 AM


All times are GMT -6. The time now is 07:59 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.