Page 15 - Communication Commerce and Power The Political Economy of America and the Direct Broadcast Satellite

2 Communication, Commerce and Power

consciousness first emerged about a decade earlier - a period marking
America's relative political-economic decline. Of course a more direct
factor fueling this awareness was mounting empirical evidence of the
strength and growth opportunities afforded by information and com-
munication activities.
In 1986, American companies were responsible for over 43 per cent
of world revenues in this rapidly growing sector and this dominance
was particularly strong in information-based services, where US cor-
porations generated 47 per cent of international revenues. Not only
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was the United States the world's largest services exporter prior to the
opening up of world markets through the Uruguay Round General
Agreement on Tariffs and Trade (GATT), it also held the largest
services trade surplus. While from 1987 to 1992 the US trade surplus
in services increased almost four-fold, reaching US$60.6 billion in
4
1992, the US trade deficit in goods was reduced from -$159.5 billion
in 1987 to -$96.2 billion in 1992. As a result of the services surplus, in
1987 the US trade deficit was lowered by 8 per cent, and in 1990
services exports reduced this by 36 per cent. In 1992, the US trade
deficit was reduced by 63 per cent as a result of America's relative
strength in services. 5
Taken together, what can be classified as core US information-
based industries (defined here as those industries primarily engaged
in the production and dissemination of copyrighted materials) -
including newspapers and periodicals, book publishing, radio and
television broadcasting, cable television, records and tapes, motion
pictures, advertising, computer software, and data processing - in real
value-added terms, grew from $96.4 billion in 1977 to $238.6 billion in
1993. As measured in relation to national Gross Domestic Product
(GOP), these industries constituted 2.2 per cent of US GOP in 1977
and 3.74 per cent in 1993. Applying a broader definition of informa-
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tion-based industries/ their total value rose from $163.5 billion in
1977 to $362.5 billion in 1993. In relation to the rest of the US
economy, these industries constituted 3.73 per cent of GOP in 1977
and 5.69 per cent in 1993. Employment in core information-based
industries rose from 1.5 million jobs in 1977 to almost 3.0 million in
1993. Again, applying a broader definition of information-based
industries, employment increased from 3.0 million to 5.7 million.
Also from 1977 to 1993, employment in information-based industries,
measured either narrowly or broadly, grew by an average of 4.5 per
cent each year while employment in the US economy as a whole grew
at an average rate of 1.7 per cent. 8