Paul NyhartcloseAuthor: Paul Nyhart
Name: Paul Nyhart
About: Paul Nyhart has been the Head Editor and Writer of JaceHallShow.com since Season 3. He began his career as a sports announcer, segueing into the world of voice-over and film production. Send all tips to Paul@HDfilms.comSee Authors Posts (394)
To say that it’s been an interesting week in the US business market would be quite the understatement. We’ve heard everything from apocalytpic warnings, to cryptic denials, with splatterings of political rhetoric filling the gaps in between, to describe the status quo.
The United States economy is at something of a crossroads, with many belieinvg ‘crossroads’ to be a fancy way of saying “China will be directing traffic soon.” It’s no secret that China, the world’s 2nd largest economy is booming, and it’s assumed that’s where many of Americans consumer goods are made.
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.
That might surprise you, considering that our conventional thought process as Americans is that everything we buy needs to be cheap, and if it’s cheap, it’s probably made in China.
What’s the most popular line of US consumer products that are “made in China”? Maybe not surprisingly, clothing. In the clothing/shoes category, 35.6% of consumer purchases in 2010 were from items with the “Made in China” label.
Perhaps most interesting is that the cost of the import is only 1.2%, meaning that for every dollar spent on an item that is made in China, 55 cents goes towards services/goods produced in the US.
So what does this all mean? The U.S. shouldn’t be afraid of China’s growing economic dominance and their subsequent worry over inflation? Partially, yes. It also shows that markets are more resilient than we give them credit for, and while we have a large amount of imports from China, the conventional theory that China is dominating US consumer goods appears to be something of a misnomer.
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Post By Paul Nyhart (394 Posts)
Paul Nyhart has been the Head Editor and Writer of JaceHallShow.com since Season 3. He began his career as a sports announcer, segueing into the world of voice-over and film production. Send all tips to Paul@HDfilms.com
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