Americans are surrounded by manufactured goods at home and work— so how can the manufacturing sector represent only 11% of GDP? The explanation is that it doesn’t. MAPI Foundation research examining the full value chain reveals that manufacturing accounts for 32% of GDP. We also find that the manufacturing multiplier is almost three times as high as official data suggest.
While there is no debating that China must engage in acceptable trade practices, the world must recognize significant shifts in the Chinese landscape. Far from just slowing, China is seeing changes to its growth composition and to its potential growth that might turn the economic policy focus more inward, although, without a doubt, China will remain a critical player on the global economic stage. A broad understanding of such shifts in the nation is needed for an optimal answer to the “China question.”
Relatively strong post-recession employment growth is not a statistical anomaly, though only a small portion of the gain is coming from internet and telecommunications jobs. GDP is underestimated, but it is consistently biased, and the gig and free economies are too small to explain the productivity gap. Rather than blaming statistics, analytical effort is better spent determining the root causes for slow productivity growth.
The European Central Bank is making another attempt at stability through dramatic measures. Europe's falling prices, currency, punitive rates on bank profits, and convoluted politics all complicate the effects of policymaking. Recent data on industrial production and GDP have been promising, however.
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