America passes a milestone!

We now have more people employed in government than manufacturing.

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—– Graph from Contrary Investor, 9 December 2008 — subscription only.

It’s a milestone.  But to what end does this road lead us?

For another perspective

See Can you see the signs of spring in the coming of winter? A note about the recession (10 September 2008).   Esp note graph #2, “US exports of goods and services as a % of GDP.”  It is often said that “the US no longer makes things.”   Not so, as exports have grown as a fraction of the US economy for 30 years.   That is important and good news.  America must earn its way in the world, and by some means other than as a largely unwanted global policeman.

Afterword

If you are new to this site, please glance at the archives below.  You may find answers to your questions in these.

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For more information from the FM site

To read other articles about these things, see the FM reference page on the right side menu bar.  Of esp relevance to this topic:

For more information from the FM site

To read other articles about these things, see the FM reference page on the right side menu bar.  Of esp interest these days:

Implications for the future, about structural changes to America from this crisis

  1. Treasury Secretary Paulson leads us across the Rubicon, 9 September 2008
  2. Say good-bye to the old America. Welcome to our new socialist paradise!, 17 September 2008
  3. Another voice warning about the nationalization of AIG, 18 September 2008
  4. Another step away from our Constitutional system, with applause, 19 September 2008
  5. America appoints a Magister Populi to deal with the financial crisis, 21 September 2008
  6. Legal experts discuss if the Paulson Plan is legal, 21 September 2008
  7. German Finance Minister Peer Steinbrück explains how the world is changing, 30 September 2008
  8. America has changed. Why do so many foreigners see this, but so few Americans?, 1 October 2008
  9. America is changing. Read some chillling words from a liberal economist, 2 October 2008

Originally published at Fabius Maximus and reproduced here with the author’s permission.

One Response to "America passes a milestone!"

  1. Lou Thomas   January 23, 2009 at 7:10 am

    Your claim that exports have grown as a fraction of the U.S. economy for years (not just in the recent recession) comes as a surprise to me. Perhaps you mean as a percentage of the GDP. But considering that the U.S. has been living on borrowed money for years, now, *net* trade has clearly had a negative, not a positive, trend, right? So, if exports are growing as a percentage of GDP, is that because GDP is shrinking relative to consumption? I say this in all ignorance – correct me if I am wrong.Industry has been exported from the U.S. to cheap labor and environmentally permissive havens for decades, and the produced goods have been re-imported. It is hard to believe that this has not compromised our ability to export our way out of this crisis.