"Made-in-China" Paltry Component of American Spending

A new study by economists at the San Francisco Federal Reserve concludes that things made in the U.S. still dominate the American marketplace. According to the report titled The U.S. Content of "Made in China," goods and services from China accounted for only 2.7 percent of U.S. personal consumption budgets in 2010. In fact about 88.5 percent of U.S. spending last year was on American-made products and services. The preponderance of Americans "buying American" can be explained by the locally-driven service sector, which accounts for about two-thirds of U.S. residents' spending. Even goods manufactured in China and sold in the US contribute to the U.S. economy, with transport, storage and marketing all involving local labor, and profits generated for the shareholders of relevant American companies. "On average, of every dollar spent on an item labeled 'Made in China,' 55 cents goes to services proffered in the United States," the report said.