Friday, June 10, 2011

Exports Unimportant in US growth 1929-1970

How often I've read some "economist" say something like this:

Our 40's and 50's economic hay-day was never going to last, the whole of the industrialized world was leveled EXCEPT America and we were the only place the rest of the world had to go both for the products they needed and the capital goods to rebuild their own industries. Definitely a good position to be in, but not one likely to be replicated or even maintained unless we want to start a new world war and level all the productive capacity Germany, Eastern Europe, India, S.E. Asia, Mexico, etc. (I don't think that would work out so well for us) We had a remarkable run of good luck...

The problem is - this is completely wrong. If you look at the historical statistics, you'll see that US Exports to the rest of the world (excluding Canada) were a minor factor in our economic growth. Here are the numbers:

1929:
US GNP -$100 billion
Merchandise Exports** - $4 Billion
Exports To Canada - $1 billion
US Budget - $4 Billion

1940
GNP - $100 Billion
Merchandise Exports ** - $4 Billion
Exports To Canada - $700 Million
US Budget - $10 Billion

1950
GNP - $285 Billion
Merchandise Exports ** - $7 Billion
Exports To Canada - $2 Billion
US Defense Budget - $24 Billion

1960
GNP - $564 Billion
Merchandise Exports** - $15 Billion
Exports To Canada - $4 Billion
US Defense Budget - $53 Billion

1970
GNP - $1,000 Billion
Merchandise Exports** - $35 Billion
Exports To Canada - $9 Billion
US Defense Budget - $95 Billion

** = excludes crude raw materials and food.

As shown above, from 1929 to 1970 our GNP increased from by almost $900 Billion dollars from approximately $100 Billion to $1,000 Billion. Our Merchandise exports increased from $4 billion to $35 Billion. Our Merchandise exports to the rest of the world (excluding Canada) increased from $3 Billion to $24 Billion.

So to recap. from 1929 to 1970 - US GNP increases $900 Billion, US Manufacturing exports (less Canada) increase by $21 Billion. That's 2 Percent of the increase. Even in 1970 our Merchandise Exports amounts to only $200 per person. Meanwhile, we were spending almost $1,000 a person just on the US Defense Budget.

4 comments:

Trooper York said...

Jeez.

This is a lot more fun than pointy breast posts.

No wonder you like it at boring heads.

Trooper York said...

Today's Adrienne Barbeaus birthday you know.

rcocean said...

Thanks for the posts. I loved Adrienne Barbeaus Breasts. I'd often watch "Maude" -with the sound off - just to see them in action.

E R E said...

had to google Adrienne Barbeau, but i now whole-chest - er, whole-heartedly agree!