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Current Events & Hot Topics Current Events & Hot Topics

US trade deficit widens in November

Posted by on Jan. 11, 2013 at 2:44 PM
  • 5 Replies

TRADE GAP HIGHER: The U.S. trade deficit grew 15.8 percent in November from October to $48.7 billion, a seven-month high.

EXPORTS AND IMPORTS: The deficit increased because imports rose 3.8 percent, while exports increased just 1 percent. The import gain was led by consumer goods, reflecting strong demand for foreign-made cell phones.

IMPACT: The wider deficit will likely slow economic growth in the October-December quarter because it means Americans spent more on foreign products while U.S. businesses earned less in overseas sales. But the jump in imports shows consumers have maintained their appetite for spending, which could help growth in the coming months.


http://www.google.com/hostednews/ap/article/ALeqM5jrIA7bQ0O8ra0BxV2NDh5rMQNbeg?docId=c9bf638f492b44b1bed46329123b5097


Can growth really be determined by the jump in imports or is it simply Americans have less money and are forced to buy what is cheaper? 

How do you think this will affect layoffs?

by on Jan. 11, 2013 at 2:44 PM
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Replies (1-5):
radioheid
by Libertarian on Jan. 11, 2013 at 2:52 PM

To answer the question, I think Americans have less money and are thus buying cheaper, foreign-made goods. Then again, we've been big customers of Asia for quite some time...

At any rate, this really doesn't surprise me. We can't keep up when people are paid a minimum of $7.25 an hour here, and folks are being paid pennies "over there". Can anyone name one single solitary resource we hold a geographical monopoly on? I can't. Everything we have, "they" have, and for the most part, "they" can do it cheaper.


"Roger that. Over."

R   A   D    I    O    H    E    I    D

stormcris
by Christy on Jan. 11, 2013 at 3:18 PM

Good points

Quoting radioheid:

To answer the question, I think Americans have less money and are thus buying cheaper, foreign-made goods. Then again, we've been big customers of Asia for quite some time...

At any rate, this really doesn't surprise me. We can't keep up when people are paid a minimum of $7.25 an hour here, and folks are being paid pennies "over there". Can anyone name one single solitary resource we hold a geographical monopoly on? I can't. Everything we have, "they" have, and for the most part, "they" can do it cheaper.


meriana
by Platinum Member on Jan. 11, 2013 at 3:40 PM


Quoting radioheid:

To answer the question, I think Americans have less money and are thus buying cheaper, foreign-made goods. Then again, we've been big customers of Asia for quite some time...

At any rate, this really doesn't surprise me. We can't keep up when people are paid a minimum of $7.25 an hour here, and folks are being paid pennies "over there". Can anyone name one single solitary resource we hold a geographical monopoly on? I can't. Everything we have, "they" have, and for the most part, "they" can do it cheaper.

This. Plus U.S. companies used to make their products here, sell them here and also export them. These days many U.S. companies have moved most, if not all, of their manufacturing over-seas to take advantage of cheap labor. So they make their products there, sell them there and also export them to the U.S. for sale. No wonder we are importing more than we export, we are importing products made by companies based in the U.S.


romalove
by Roma on Jan. 11, 2013 at 3:42 PM
2 moms liked this

What we used to have is ingenuity.  We were innovators.  We would come up with the newest and the best.  We still are, but we don't use that innovation to create enough jobs here.  We create and then have someone else make it in mass quantities.

We need lead ourselves out of our economic torpor. 

stormcris
by Christy on Jan. 11, 2013 at 3:43 PM

Another good point but since our credit rating and lively hood is dependant upon exports this trend could be very destructive.

Quoting meriana:


Quoting radioheid:

To answer the question, I think Americans have less money and are thus buying cheaper, foreign-made goods. Then again, we've been big customers of Asia for quite some time...

At any rate, this really doesn't surprise me. We can't keep up when people are paid a minimum of $7.25 an hour here, and folks are being paid pennies "over there". Can anyone name one single solitary resource we hold a geographical monopoly on? I can't. Everything we have, "they" have, and for the most part, "they" can do it cheaper.


This. Plus U.S. companies used to make their products here, sell them here and also export them. These days many U.S. companies have moved most, if not all, of their manufacturing over-seas to take advantage of cheap labor. So they make their products there, sell them there and also export them to the U.S. for sale. No wonder we are importing more than we export, we are importing products made by companies based in the U.S.




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