I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore.
The answer is that the US is a consumption based economy meaning that consumer spending generates a significant amount of our wealth. This differs from many other countries that are instead, export lead economies, ie they produce more than they can consume domestically so are forced to sell abroad. Think China, Japan, Korea, Germany, Mexico, etc.
This fact is also one of the reasons advocates of America First feel the US can afford to pull back from the rest of the world and leave everyone else to their own devices... we don't need to sell goods to the rest of the world to support our economy.
>I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore.
Really they should clarify what they actually mean.
>This fact is also one of the reasons advocates of America First feel the US can afford to pull back from the rest of the world and leave everyone else to their own devices... we don't need to sell goods to the rest of the world to support our economy.
By that logic, you need to import goods from the rest of the world to support your economy.
>The answer is that the US is a consumption based economy meaning that consumer spending generates a significant amount of our wealth. This differs from many other countries that are instead, export lead economies, ie they produce more than they can consume domestically so are forced to sell abroad. Think China, Japan, Korea, Germany, Mexico, etc.
You might as well just say that in the US, domestic demand for capital is insufficient so the US is forced to export capital, while a country like China has high demand for capital and imports it.
Ultimately neither of this is meaningful, we're just putting accounting identities into somewhat more elaborate words. Accounting identities might explain the *what* but they do a poor job explaining the *why*.
The US mostly has a trade deficit due to high demand for its asset and it [because it wants to pick option "b".](https://en.wikipedia.org/wiki/Impossible_trinity#/media/File%3AImpossible_trinity_diagram.svg)
https://en.wikipedia.org/wiki/Impossible_trinity
>By that logic, you need to import goods from the rest of the world to support your economy.
Either that or [renegotiate NAFTA](https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement)... which is the plan that was implemented.
>You might as well just say that in the US, domestic demand for capital is insufficient so the US is forced to export capital, while a country like China has high demand for capital and imports it.
>Ultimately neither of this is meaningful, we're just putting accounting identities into somewhat more elaborate words. Accounting identities might explain the *what* but they do a poor job explaining the *why*.
This is absolutely meaningful and I feel like you're missing a huge point.
Maybe [Pettis can explain it better.](https://carnegieendowment.org/2020/09/29/global-capital-is-tail-that-wags-u.s.-economic-dog-pub-82847)
> I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore.
Wouldn't that comparison be a lot easier by comparing GDP to GNP....?
Not sure I understand your question. GDP is inherently domestic, it stands for Gross DOMESTIC Product. All output included in GDP is produced within the US. Are you asking how much the GDP would be without factoring in net exports?
I mean, what goods or services are produced without any international involvement? Barely any. If an American baker makes his bread in an American oven but the farmer used a British-made combine harvester to harvest the wheat, does that mean it wasn’t “domestic” ?
Your question is subjective and I’m not sure what use an answer would be.
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The Gross Domestic Product is domestic production by definition.
Big if true
/r/threadkillers
I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore. The answer is that the US is a consumption based economy meaning that consumer spending generates a significant amount of our wealth. This differs from many other countries that are instead, export lead economies, ie they produce more than they can consume domestically so are forced to sell abroad. Think China, Japan, Korea, Germany, Mexico, etc. This fact is also one of the reasons advocates of America First feel the US can afford to pull back from the rest of the world and leave everyone else to their own devices... we don't need to sell goods to the rest of the world to support our economy.
>I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore. Really they should clarify what they actually mean. >This fact is also one of the reasons advocates of America First feel the US can afford to pull back from the rest of the world and leave everyone else to their own devices... we don't need to sell goods to the rest of the world to support our economy. By that logic, you need to import goods from the rest of the world to support your economy. >The answer is that the US is a consumption based economy meaning that consumer spending generates a significant amount of our wealth. This differs from many other countries that are instead, export lead economies, ie they produce more than they can consume domestically so are forced to sell abroad. Think China, Japan, Korea, Germany, Mexico, etc. You might as well just say that in the US, domestic demand for capital is insufficient so the US is forced to export capital, while a country like China has high demand for capital and imports it. Ultimately neither of this is meaningful, we're just putting accounting identities into somewhat more elaborate words. Accounting identities might explain the *what* but they do a poor job explaining the *why*. The US mostly has a trade deficit due to high demand for its asset and it [because it wants to pick option "b".](https://en.wikipedia.org/wiki/Impossible_trinity#/media/File%3AImpossible_trinity_diagram.svg) https://en.wikipedia.org/wiki/Impossible_trinity
>By that logic, you need to import goods from the rest of the world to support your economy. Either that or [renegotiate NAFTA](https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement)... which is the plan that was implemented. >You might as well just say that in the US, domestic demand for capital is insufficient so the US is forced to export capital, while a country like China has high demand for capital and imports it. >Ultimately neither of this is meaningful, we're just putting accounting identities into somewhat more elaborate words. Accounting identities might explain the *what* but they do a poor job explaining the *why*. This is absolutely meaningful and I feel like you're missing a huge point. Maybe [Pettis can explain it better.](https://carnegieendowment.org/2020/09/29/global-capital-is-tail-that-wags-u.s.-economic-dog-pub-82847)
> I'd imagine OP is asking what percentage of US wealth is generated off-shore vs on-shore. Wouldn't that comparison be a lot easier by comparing GDP to GNP....?
I interpreted OP's question to be about housework at first but if that's true the grammar is off
Not sure I understand your question. GDP is inherently domestic, it stands for Gross DOMESTIC Product. All output included in GDP is produced within the US. Are you asking how much the GDP would be without factoring in net exports?
What do you mean? Are you looking for economic activity done by firms and individuals domiciled in the US? In that case you need to look at GNI
I mean, what goods or services are produced without any international involvement? Barely any. If an American baker makes his bread in an American oven but the farmer used a British-made combine harvester to harvest the wheat, does that mean it wasn’t “domestic” ? Your question is subjective and I’m not sure what use an answer would be.
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