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

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