There’s a few one-star Amazon reviews for the book that suggest McAfee’s data is incorrect or misleading. Here’s a quote from one of them, which seems like a solid counterargument to me:
“However, on the first slide on page 79, he notes that the data excludes impact from Import/export of finished goods. Not raw materials but finished goods. He comments that Net import is only 4% of GDP in the US. Here he makes a (potentially) devastating error – (potentially) invalidating his conclusion.
While Net imports is indeed around 4% of GDP, the gross numbers are Exports at approx. +13% and Imports at approx. −17%. So any mix difference in finished goods in Export and Import, can significantly change the conclusion. It so happens that US is a major Net importer of finished goods e.g. Machinery, electronic equipment and autos (finished goods, with materials not included above in the consumption data). Basically, a big part of US’ consumption of cars, washing machines, computers etc. are made in Mexico, China etc. They contain a lot of materials, not included in the graphs, upon which he builds his conclusion/thesis. So quite possibly, there is no de-coupling.”
There’s a few one-star Amazon reviews for the book that suggest McAfee’s data is incorrect or misleading. Here’s a quote from one of them, which seems like a solid counterargument to me:
“However, on the first slide on page 79, he notes that the data excludes impact from Import/export of finished goods. Not raw materials but finished goods. He comments that Net import is only 4% of GDP in the US. Here he makes a (potentially) devastating error – (potentially) invalidating his conclusion.
While Net imports is indeed around 4% of GDP, the gross numbers are Exports at approx. +13% and Imports at approx. −17%. So any mix difference in finished goods in Export and Import, can significantly change the conclusion. It so happens that US is a major Net importer of finished goods e.g. Machinery, electronic equipment and autos (finished goods, with materials not included above in the consumption data). Basically, a big part of US’ consumption of cars, washing machines, computers etc. are made in Mexico, China etc. They contain a lot of materials, not included in the graphs, upon which he builds his conclusion/thesis. So quite possibly, there is no de-coupling.”
Thanks very much for pointing this out. I hadn’t seen these rebuttals before.