I’m glad to see mainstream newspaper reporters accurately report that the trade deficit is a drag on growth.
While the November trade deficit was narrower, the reason was energy. Crude oil imports dropped because we produce more of our own energy. And because the price of crude was lower. Not because our goods deficit improved.
As for the deficit, economists say they believe that it will keep rising in 2015, reflecting an expanding American economy that will import more foreign products than United States producers will sell overseas. American manufacturers are grappling with weakness in major export markets like Europe and Japan, as well as a strengthening dollar, which makes American goods more expensive for foreign consumers.
A rising trade deficit acts as a drag on economic growth, but economists are still forecasting that overall growth next year will be stronger than in 2014.
Yes, but if we had a trade surplus, we’d grow much more quickly. Adding not only jobs but wage growth.
Washington folks don’t yet get the fact that a “jobs plan” means balancing trade. It’s our job to educate them.