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Post by blueneck on Mar 15, 2011 13:17:35 GMT -6
From Industry Week
China topped the United States as the world's largest manufacturer for the first time last year, according to a study on March 14 by economic research firm IHS Global Insight.
China accounted for 19.8% of global manufacturing in 2010, compared with 19.4% for the U.S. -- $1.995 trillion worth, compared with $1.952 trillion, according to IHS.
But by measures of productivity, China remained far behind the United States, with U.S. manufacturing workers generating more than eight times the value per person than China's.
"In other words, the U.S. manufacturing sector is producing roughly the same amount of output in 2010 with 11.5 million workers as opposed to its Chinese counterpart with around 100 million workers," IHS said.
Japan remained a distant third last year, generating $1.027 trillion by manufacturing, followed by Germany, with $618 billion.
But the most telling indicators were the pace of growth: over 2008-2010, China's manufacturing sector grew at a pace of 20.2% per year, while the United States grew at 1.8% and Japan at 4.25%.
Germany and fifth-ranked South Korea both contracted, and sixth-ranked India grew at 7.3% annually.
IHS pointed out that at one-third of the total economy, China's manufacturing sector is far larger as a portion of output than any other country. In the United States, by comparison, the share is just 13% of all production; in the other top-ranked countries, it is 15%-20%.
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Post by unlawflcombatnt on Mar 15, 2011 14:52:24 GMT -6
But by measures of productivity, China remained far behind the United States, with U.S. manufacturing workers generating more than 8 times the value per person than China's. "In other words, the U.S. manufacturing sector is producing roughly the same amount of output in 2010 with 11.5 million workers as opposed to its Chinese counterpart with around 100 million workers," IHS said. That still makes a Chinese worker a more cost-effective worker per unit of production, if he makes $1/hour vs. an American making $19/hour. Chinese wages will still have to rise over 100%--and with 0 productivity increase--before labor costs begin favoring American workers. But this report also indicates that there's no deficiency in American workers' productivity, nor any lack of job skills or training compared to Chinese workers. Their only deficiency is requiring more than $1/hour to survive.
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Post by danreller on Mar 15, 2011 18:29:09 GMT -6
These figures make me wonder if the US GDP figure is accurate.
For years, I think the US GDP figures have included "productivity from abroad". GDP as I studied it 30+ years ago is the net "productivity" of the US, i.e. the total value the US produces.
I've heard/read that many "US" companies have taken advantage of low wages overseas, shipped those goods to the US and had US workers "snap components together - like Lego Blocks,snap, snap, snap", and considering/counting/registering the final product "Made in USA" and thus counting them in the US GDP.
If so, the "real" US GDP figure could be MUCH LOWER and all of our suppositions/figures/calculations would be much less.
Most of the things we buy (I shop at WalMart [reluctantly because there's very little option], Sam's [same as WalMart], Lowe's, and from there various smaller stores). Almost everything I buy or see is made in China. I know the US is still "King" in pharmaceuticals,chemicals, heavy equipment and the #1 manufacturer of weapons, but, am I missing something? Are we selling that much "services" and is the average US worker advancing their lot because of those "services"?
I'm sorry I feel I'm not Liberty to keep talking and speaking my feelings, but, I welcome your responses.
I feel our GDP figures "we are fed" are very misleading/criminal.
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Post by blueneck on Mar 15, 2011 19:25:39 GMT -6
Yes its true Dan that US productivity and GDP figures do not adequately account for the amount of foreign made content in domestic goods and therefore are inflated. Most honest and non ideologic economists recognize this. And it does square with the reality that much of what passes for mfg in the US today is simply a final assembly point or repackaging operation of foreign made components - much like your example of snapping a few pieces together, sticking a label on it and calling it good. Gomory has one of the best explanations how this works I have seen www.huffingtonpost.com/ralph-gomory/does-outsourcing-create-j_b_792647.html
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Post by graybeard on Mar 16, 2011 0:47:20 GMT -6
Saw on 60 Minutes last Sunday that 80% of our prescription drugs are made outside the US>
GB
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Post by unlawflcombatnt on Mar 16, 2011 1:40:43 GMT -6
Saw on 60 Minutes last Sunday that 80% of our prescription drugs are made outside the US> GB This just reaffirms the falseness of the claims about "unsafe" and "dangerous" drugs being imported if we allowed for drug re-importation. Re-importation would only be "unsafe" for the compensation of Big Pharma's CEOs, management, and shareholders of their stocks.
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Post by fredorbob on Mar 16, 2011 2:59:28 GMT -6
So now a Communist country with the largest population on earth has about the same manufacturing capability as the US. Good job.
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