[SeeSharp]

GDP counts government spending as production. So lower manufacturing as a percentage of GDP is misleading since government spending has grown enormously since ‘46.

[A.Hun]

Government spending does count as part of GDP. However, it would be deficit spending that actually skews the GDP figure. (All government spending except deficits is based on taxes based on wealth production).

Deficit spending has accounted for on average about 3% of GDP (until Obama), so it should not affect the mfg % by more than a small factor.