GM Bankruptcy:Decline of U.S. Industrial Dominance?

by Laura Ehrenberg-Chesler on June 26, 2009

in Credit Crisis,Debt

After recently reading a great piece by George Friedman the geopolitical strategist at Strafor, I have come to the conclusion that while the GM bankruptcy is a setback for the economy, the employees of the company and its related businesses, it is not the end of U.S. industrial dominance.

In 2006 U.S. industrial production equaled $2.8 trillion, the largest in the world, and more than the production of Japan and China combined.  Auto manufacturers and suppliers accounted for only 5.54% of the entire value added U.S. industrial output.

Freidman contends and we agree that the “collapse of the automotive manufacturing sector simply represents the culling of the least-efficient sector of American manufacturing”.  The future of U.S. economic  prosperity resides with our ability to continue to dominate high technology manufacturing, which include computers, space travel,  nuclear and communications.

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