OT: CNN reports record $764B trade gap

[Thomas Rogers]

Here is just a clipping...

Made in U.S.A.: Record trade gap

Imports top exports by nearly $764 billion, fed by record oil prices, insatiable consumer appetite for imports.



By Chris Isidore, CNNMoney.com senior writer

February 13 2007: 11:02 AM EST



NEW YORK (CNNMoney.com) -- The U.S. trade deficit jumped 6.5 percent to a record $763.6 billion last year as high oil prices and Americans' appetite for foreign-made goods outpaced strong exports.



The deficit came even as U.S. exports surged to a record $1.44 trillion last year, up 12.3 percent from 2005. But imports also jumped, up 10.5 percent to about $2.20 trillion for the year.



Even with exports growing, the deficit was a drag on the economy, as it meant that every man, woman and child spent an average of about $7,300 on imported goods and services during the year, turning to factories overseas rather than U.S. producers for the products they wanted.

And the rest is at the link below:

 

[Bill V]

$764 isn't much. Many of us take that much home each week.



(Sorry, couldn't resist.)

 

[Nelson Atwell]

$7300 would be that flat panel TV and laptop computer everyone bought last year. Are those things even made in the US?

 

[Dallas Starr]

does the defecit even matter anymore? its not like it is EVER going to get paid off... why do they even keep track....



lucky for me Im living in a province with no provincial debt anymore (also the wealthiest province in Canada.... maybe the province can get me a new ST... geeze)....

 

[Thomas Rogers]

Big D...the defecit isn't something that gets paid off, it isn't a debt. I think you are confusing the US Trade Defecit with the National Debt.



TJR

 

[Dallas Starr]

oooh oops... wasnt reading close enough...

 

[Dan Miller 3]

Keep it up gang...keep buying those imports!!!:wacko::wacko:

 

[Ryan Schaecher]

We have become more of a service society than a manufacturing society, so a trade gap would be considered normal for this evolution. It's much more difficult to valueate services such as designs, marketing, financial services, etc the same way we value a boat of cars comming from Japan...



Trade deficeits used to mean something. Today in our world wide economy, they don't mean much. Yes, it would be nice to have a trade surplus, but that would mean that we aren't paying enough and the prices would rise or infation would take a hold..... supply an demand.

 

[Thomas Rogers]

I agree with what you say, R Shek, except where you say it is hard to valuate services. That's easy. The issue, as you say, is that we have become a dominantly service-based economy, and we mostly sell those services domestically, yet we buy most of our durable goods from overseas. In many ways, we have become a big, services-provincial island.

 

[Ryan Schaecher]

The big thing to remember is that the services we "sell" to overseas are not factored into the trade gap as they are not tageagble goods. Only physical items are counted and that is what I ment by valueating services.



If you were to actually include what we "sell" overseas in terms of technological services, designs, etc the gap may actually be positive.

 

[Tom Schindler]

What "services" do we sell?





Tom

 

[TomT]

What "services" do we sell?

Porn?

 

[Thomas Rogers]

Our country sells tons of services: hotel, restaurant, and tourism are all service-related industries. Any professional services including legal, medical, etc are services. Once the typical American pays for mortgage/rent, cars, food, and clothes, the rest goes to services of one type or another, or durable imported goods.



TJR

 

[Nelson Atwell]

I'm wondering if the Government includes the cost of software, such as Microsoft Windows in their calculations. We provide the World with these type of products, but many of them are downloaded directly from servers. Many of the "goods" sold in the U.S. to overseas markets are not tangible and therefore would not be processed through customs. It is very unlikely that the Commerce Department (or Homeland Security if they were absorbed) would even capture the transaction.



Oh yeah, TomT. Not like I am an expert on the subject, but I think most of the porn now days comes from my neck of the woods (Eastern Europe). :lol:

 

[Thomas Rogers]

NelsonOKC says:

Oh yeah, TomT. Not like I am an expert on the subject, but I think most of the porn now days comes from my neck of the woods (Eastern Europe).

Most of the good stuff does!



TJR

 

[Jose Santana]

Services by helping them do the things we do BETTER! We keep exporting our science and technology and soon they won't need us anymore.... Sorry but I am salty on this exporting of everything!:angry:



Joseymack

 

[Thomas Rogers]

If we do it BETTER, joseymack, then why is it being exported. Better means better, right?



TJR

 

[Richard L]

oops, wrong thread.