[brostholder]

I just read an interesting article that I have copied verbatim here. I have cited the source, but I am unsure if it will list as a hyperlink. If not, just copy and paste into your browser. I will be interested in the replies!

Misconception : Most of what Americans spend their money on is made in China.
Fact: Just 2.7% of personal consumption expenditures go to Chinese-made goods and services. 88.5% of U.S. consumer spending is on American-made goods and services.
I used that statistic in a recent article, and the response from readers was overwhelming: Hogwash. People just didn't believe it.
The figure comes from a Federal Reserve report. You can read it here.FRBSF Economic Letter: The U.S. Content of “Made in China” (2011-25, 8/8/2011)

A common rebuttal I got was, "How can it only be 2.7% when almost everything in Walmart is made in China?" Because Walmart's $260 billion in U.S. revenue isn't exactly reflective of America's $14.5 trillion economy. Walmart might sell a broad range of knickknacks, many of which are made in China, but the vast majority of what Americans spend their money on is not knickknacks.
The Bureau of Labor Statistics closely tracks how an average American spends their money in an annual report called the Consumer Expenditure Survey. In 2010, the average American spent 34% of their income on housing, 13% on food, 11% on insurance and pensions, 7% on health care, and 2% on education. Those categories alone make up nearly 70% of total spending, and are comprised almost entirely of American-made goods and services (only 7% of food is imported, according to the USDA).
Even when looking at physical goods alone, Chinese imports still account for just a small fraction of U.S. spending. Just 6.4% of nondurable goods – things like food, clothing and toys – purchased in the U.S. are made in China; 76.2% are made in America. For durable goods – things like cars and furniture – 12% are made in China; 66.6% are made in America.
Another way to grasp the value of Chinese-made goods is to look at imports. The U.S. imported $399 billion worth of goods from China last year, which is 2.7% of our $14.5 trillion economy. Is that a lot? Yes. Is it most of what we spend our money on? Not by a long shot.
Part of the misconception is likely driven by the notion that America's manufacturing base has been in steep decline. The truth, surprising to many, is that real manufacturing output today is near an all-time high. What's dropped precipitously in recent decades is manufacturing employment. Technology and automation has allowed American manufacturers to build more stuff with far fewer workers than in the past. One good example: In 1950, a U.S. Steel plant in Gary, Ind., produced 6 million tons of steel with 30,000 workers. Today, it produces 7.5 million tons with 5,000 workers. Output has gone up; employment has dropped like a rock.

[jblum315]

Fascinating. Still hard to believe, maybe because we don't turn big-ticket items upside down to see if they say Made in China.

[uujudy]

Brostholder, I read the same article, and I was also surprised. Listening to the politicians, I thought China 'owned' us. I was glad to know that it's not true.
Thanks for sharing.

[chuckinca]

$399 Billion annually to China comes close to supporting every person in China for the entire year - excluding the new Chinese billionaires.


.

[nitehawk]

brostholder Thanks