Posted by DBOLLC, Sun 18 Feb, 2012 09;21 AM EDT
3 Economic Misconceptions
This article is a real surprise, and is contrary to the constant media spin that you hear on the main stream media.
It may also give you some hope that the good old US of A is not totally destroyed (yet). and maybe there is still some hope that we can bring it back!
3 Economic Misconceptions That Need to Die
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.
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 manufacturingemployment. 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 (X) 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.
Misconception No. 2: We owe most of our debt to China.
Fact: China owns 7.6% of U.S. government debt outstanding.
Misconception No. 3: We get most of our oil from the Middle East.
Motley Fool contributor Morgan Housel owns shares of Wal-Mart. Follow him on Twitter@TMFHousel. The Motley Fool owns shares of Wal-Mart Stores. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Wal-Mart.