Sorry all. Been out at a seminar for 2 days. Also, it is busy season, tax season and I took a radio gig. Valentine's Day. Haven't had a day off in about a month. Here's some charts to get you by and get you that daily economic fix and further convince me Americans are lazy bums;
You guys sure you're not confusing the trade deficit with the federal budget deficit?
ReplyDeleteTHis is the trade deficit. It's increasing nominally AND as a percentage fo GDP.
Not good, but certainly not GW's fault.
The federal deficit IS decrease relative to GDP. Of course the media will always point out nominal figures and never convert to GDP.
How would this in any way indicate that Americans are lazy? To me it indicates that China's currency is undervalued, and that we have a large budget deficit that is decreasing national saving...
ReplyDeleteGermans have a large trade surplus... but last I checked over 10% of them were unemployed.
Because we don't produce as much as we consume. ie-we're not willing to work for it.
ReplyDeleteAnd China does not account for the majority of our trade deficit.
Whether the trade deficit/surplus is good or bad depends upon who you are. The trade deficit sends dollars overseas for goods and services here which puts tremendous stress on our manufacturers forcing them to compete. Allows the Government to borrow (print) money with abandon. On the other hand, we could be Brazil in the 80's where they had a trade SURPLUS and 1 percent inflation a DAY. They got money (1% more a day)for all those goods and services they were shipping elsewhere. Being a manufacturer is a good thing, you are able to sell all the crap you make at any price you want to charge. Being a consumer is a bad thing as the prices are high and the quality is crap. I am just a wage slave up here in Minneapolis and I like to be able to buy excellent quality and reasonable prices. I don't care who owns the means of production, as long as I have choice. See Milton Friedman's Free to Choose.
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