Most Popular Choices
Share on Facebook 11 Printer Friendly Page More Sharing
OpEdNews Op Eds    H3'ed 10/6/15

Enormous, Humongous August Trade Deficit Welcomes TPP

By       (Page 1 of 2 pages)   1 comment
Follow Me on Twitter     Message Dave Johnson
Become a Fan
  (12 fans)

Reprinted from Campaign For America's Future

Trans-Pacific Partnership
Trans-Pacific Partnership
(Image by DonkeyHotey)
  Details   DMCA
>

The U.S. Census Bureau reported Tuesday that the August goods and services trade deficit was an enormous, humongous $48.3 billion. This is a big 15.6% increase from July's enormous, humongous $41.8 (revised) billion trade deficit.

Exports dropped 2 percent and imports rose 1.2 percent.

The monthly U.S. goods deficit with China rose in August to an enormous, humongous $32.9 billion from an enormous, humongous $30.6 billion.

The U.S. goods deficit with Japan was down a bit to $5.2 billion in August.

The U.S. goods deficit with South Korea was $2.7 billion in August.

U.S. exports of goods and services fell to $185.1 billion. This is the lowest level since October 2012.

"Horrible" For Economy

The Business Insider report, "Trade deficit balloons to $48.3 billion," explains what this means for the U.S. economy,

"'In one line: Horrible; trade is set to be a significant drag on Q3 GDP growth,' wrote Pantheon Macroeconomics' Ian Shepherdson in a client note."

The reasons for this terrible trade report are clear: our trade policies. We have a strong and rising dollar, which means things made here cost more so they are less competitive in international markets. This is partly a result of China's big devaluation (see "What Is Currency Manipulation?") We don't do anything about currency manipulation, which hurts U.S. manufacturers. A "strong" currency is great if you hold dollars, terrible if you want to sell stuff made here. But our trade deficit is not just caused by currency rates, it is also the result of other US policies that favor Wall Street and outsourcers over domestic manufacturers.

Which brings us to the Trans-Pacific Partnership agreement (TPP).

TPP and Currency Manipulation

Negotiators announced a deal to complete the TPP on Monday. TPP is still secret but leaks inform us that it does not include enforceable measures against currency manipulation. It also apparently incentivizes companies to outsource to low-wage countries like Vietnam.

Then next we receive a terrible trade deficit report -- the result of our trade policies to date. These trade policies are designed to deindustrialize the U.S., moving factories and jobs to low-wage countries, so America's "investor" class can pocket the wage differential for themselves. Inequality is soaring as a result, as the lost jobs are replaced by low-wage jobs for those lucky enough to find work.

The enormous, humongous and ongoing trade deficit, month after month, year after year, drags down our economy. Yet our news media is barely informing the public of the relationship between the trade deficit and our economic woes.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Dave Johnson Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Dave has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Three Charts To Email To Your Right-Wing Brother-In-Law

Upcoming Trans-Pacific Partnership Looks Like Corporate Takeover

Actually, "the Rich" Don't "Create Jobs," We Do

Now We Know Why Huge TPP Trade Deal Is Kept Secret From The Public

Does Clinton Really Oppose TPP? There Is A Test For That

Will TPP Kill The Post Office?

To View Comments or Join the Conversation:

Tell A Friend