United States' industrial production is one of the saddest macro charts out there.
Whenever red and blue people yell at each other politically in the past couple decades of rising political polarization, like half of it is explained by this. The pie isn't growing.
That’s shameful.
bullflag :)
Thank you, Lyn.
Please keep posting here so I don’t have to check the blue bird app anymore!
It doesn’t have to be this way
Hopefully, AI manufacturing will help America out of the woods and continue to grow.
Scary
Sadly….When we’ll be ready (bc we’ll be forced) to revert … it might be too late
Well exporting our polarization to the rest of the world should help with that. An increasing share of a shrinking pie has a history of success. Right?
It's challenging to maintain a growth mindset with data like this.
But I do deeply believe that human beings will persevere and come out of this stronger and more resilient, regardless or how polarized the world feels right now.
Fortunately, I can think of just the tool that might help us get there 🧡
What the hell is 2017=100%?
As though it's a peak performance and therefore stagnation from 2017?
That discounts how much of a industrialized powerhouse the US was in the 50-60s... doesn't make much sense
I love how the blog post that accompany offers little insight
It really is an ugly chart
What happened to make it still like it has since ~2008?
Oof 😬
There are a few multi trillion dollar amazing industires that are developing. Ai, space, crypto. If the US doesn't watch out they will lose them and that chat will go down hard!
Well, I’d be wary of industrial production as a proxy of economic success. For example, Global South countries are fed up of just being massive factories and crave what the US has aplenty: research and development, marketing services, etc. They want to move up in global value chains, but it’s tough. Of course, there’s a social aspect to maintaining a certain degree of industrialization, namely keeping employment at politically acceptable levels, but the developed world should be careful about not mistaking the forest for the trees, IMO. Anyway, my humble 2 cents (or sats?).
Ya but I feel like manufacturing output is a pretty sad measure of progress. We need less knick knacks and cheaper housing/food...
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So
//In 1956, the index of industrial production expanded to include the output of electric and gas utilities along with the measures for manufacturing and mining. These three sectors continue to be the main components of the index today.
This would make so much more sense if a few of the 300 sectors that comprise the index were inclcuded... like mining with a 1919=100 weight
https://www.federalreserve.gov/releases/g17/100_years_of_ip_data.htm
Does massive money printing count as industrial production?
🤙🏻⚡️
Your post is getting a lot of likes.
Added to the https://member.cash/hot feed
Very good chart and point
Flat as my ass. Damn shame
There are people fighting over how you split the pie, and there are people working to make the pie bigger. Choose wisely.
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How is this possible when more and more things are being produced? More cars, more tvs, even more housing.
How is industrial production measured i wonder? Is it number of iphones? :)
More gold(you know what I mean) from #[1]
Thanks for the posts. Don’t know where you find the time but I’m glad you do.
thanks for posting on here. I love your work, and the more good content on here, the faster the network effects will work in our favor.
Someone decided US corporations could basically operate as global, cheap labor plantations. China gaining MFN and WTO, despite numerous obvious issues, was the icing on the cake ..
That is the saddest. It'd so sad I couldn't share it with my wife. I'm glad I got to share it with my favorite macro analyst, Lyn Alden, but still sad. 😔
Nice graph. Although that might be the case for many developed countries. Imho problem is that since population in US is still growing, the pie is being perceived smaller for them, compared to countries with shrinking populations ( japan, swiss, etc)
