Saturday, September 10, 2011

US Exports at an All-Time High! Yes, we still do make stuff in the US. Why do we see trade with the rest of the world as a problem instead of an opportunity?

The Red Line represents total imports and the Blue Line total exports. Subtract these two and you get our trade deficit in goods and services with the rest of the world (imports are greater then exports).  The last point on the blue line (exports) is higher than it has ever been. 
Source: Calculated Risk
This second graph shows the impact of ONE good on our trade deficit, Oil---and it is large.  The total trade deficit was $44.8 billion for July and oil imports accounted for roughly $25 billion of the deficit. Need I say it again---we must either "drill, baby, drill" or become less dependent on the stuff. 

I prefer the latter, but the former would create lots of jobs quickly AND send a signal about future supply which would tend to decrease the price of oil today. 

Source: Calculated Risk
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