Economy Grew Just A Little More Than Expected 2Q 2021-The Digital Economy and Manufacturing Can Grow Together

Can development
 in internet/information push manufacturing
to innovate with co-development technologies
(virtual and physical adaptations)?
Internet Association

The US Economy Grew a little more than originally thought (6.5 to 6.6)on consumer spending and exports. We can increase those export numbers and reduce those supply lines back to U.S. if we seek to protect our future economic authority. We have opportunities to put ourselves above the Chinese system while attracting more international investment. Finding our path into the digital economy will likely define what that landscape looks like for a lot of other countries. We have the U.S. dollar and underlining post WWI economic structures that can push our growth into new platforms with the right support. Watching the factors that contribute to the Digital Economy and the digitization of the American economy will help provide some insight into our most advantageous economic steps moving forward. 

"The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 6.5 percent. The update reflects upward revisions to nonresidential fixed investment and exports that were partly offset by downward revisions to private inventory investment, residential fixed investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, were revised down (see "Updates to GDP"). See 2nd Quarter 2021 (Second Estimate).

What I would like to have a better understanding of is how environmental factors pushed us into the Digital Economy during and after COVID. The latest estimates are from 2019. See US Department of Commerce June 2021 Digital Economy Release states that the digital economy is 9.6% just behind manufacturing at 10.9%. Calculating the digital economy is relatively new and we may not be accurately reflecting actual activity with relatively new metrics (meaning these metrics were built off of older ways of thinking about the digital economy and what category we reflect information. There is some subjectively in absolute numbers!😂 LOL I know, "stupid!") What we can say is that the digital economy and the manufacturing economy in the modern era are becoming integrated and intertwined leading to a duel cluster builds of networks and manufacturing to develop faster growth in next generation manufacturing technologies. See Theory of Innovation Transactional Clusters.

An example of how to use 
multi clusters with different
components to create 
specific line of industry
development often leading
to breakthrough industries
and products.

You can see the upward trajectory of the current definition of digital economy that indicates is growing influence in our marketplace. Covid may be pushing us into the next digital platforms where digitization and manufacturing develop together creating whole new products we haven't yet developed for commercial use (See Delta County Multi-Cluster New Industries and US. 2021 Infrastructure Bill).

BEA Digital Economy 2019

BEA Digital Economy Explanation 2017

We might want to consider the possibility of new tax structures that will turn companies doing business in the U.S. to moving their HQ to the U.S.. We complain about taxes anyway and its complexity so there may be some benefits to considering alternatives. While the calibrated tax number might rely on different metrics to determine a "hometown" and "international" tax rate a company would experience a single rate (...unless there is a good reason for exemptions/reductions such as budding industries we want to foster. I'm not saying its a good idea. Just saying its an idea. I didn't look at it long enough to know if its a good idea. 🤷) See Calibrated Tax Structure