3 misconceptions that need to die.

[Quantum Windbag]

A quick pop quiz to test how much you actually know about the economy. Not to worry, it is only 3 questions, and no one is actually going to check your answers, just make a note of them for when you read the article.

1. What percentage of consumer spending goes to products made in China?
2. What percentage of out national debt is held by China?
3. What percentage of our oil comes from the Middle East?

Now that you have answered the questions here is an article to explain just how wrong you are. I should admit up front that I got 2 of these questions wrong by a significant percentage, and only got the third because I have been arguing for a long time that everyone is wrong about it.

Here are three misconceptions that need to be put to rest.
Misconception: Most of what Americans spend their money on is made in China.
Fact: Just 2.7% of personal consumption expenditures go to Chinese-made goods and services. 88.5% of U.S. consumer spending is on American-made goods and services.


Misconception: We owe most of our debt to China.
Fact: China owns 7.8% of U.S. government debt outstanding.


Misconception: We get most of our oil from the Middle East.
Fact: Just 9.2% of oil consumed in the U.S. comes from the Middle East.

3 Misconceptions That Need to Die (WMT, X)

1. 2.7% The fact is that 88.5% of consumer spending goes to American made goods.
2. 7.8%