| | | Exports hit a record high under Trump
Don Surber
Saturday, July 07, 2018
donsurber.blogspot.com
I didn't make a big deal about the economy gaining a net 213,000 jobs in June because this is now the usual. The Tax Cuts and Jobs Act of 2017 delivered within days. After 8 years, we still await Obama's health bomb to deliver those $2,500 reductions in premiums like he promised.
Having made America profitable again (MAPA) by dropping the corporate tax rate 40% -- it is now at the European average -- President Trump pivoted to trade, and the news is good.
Exports hit a record $215.3 billion in May. USA Inc. is now on pace to have revenues of $2.5 trillion this year.
Sadly, we are on pace to buy $3 trillion on goods and services, meaning our losses will hit another $500 billion or so this year.
But the May trade deficit -- loss -- was $43.1 billion, the lowest since October 2016.
The problem is China. It is a trade exploiter, not a trading partner.
"The United States’ goods trade deficit with Japan shrank 12.6 percent in May from the previous month to $5.49 billion, the U.S. Commerce Department has said," the Japan Times reported.
"The deficit with China, meanwhile, expanded 18.7 percent to $33.19 billion, while that with the European Union narrowed 8.6 percent to $13.39 billion, the department said Friday."
If we cutoff all trade with China, our annual losses as the USA Inc. would fall to a more manageable $125 billion or so.
Don't buy the "U.S." Chamber of Commerce jazz that bleeding a half-trillion a year is somehow god for us. We had 19 million factory jobs in 1979 under Jimmy Carter. After NAFTA and giving China the keys to our country, we have less than 13 million.
Our population is up 50%.
If factory jobs don't matter, why is China gobbling them up?
By the way, Washington may hate it, but businessmen love President Trump's trade policies. Steve Olson is a Facebook friend.
"I love the tariffs Trump is imposing on China. My small home based business has been hit hard by China's super low pricing on what I sell," he wrote.
"For years I have been selling used industrial inspection equipment. In the past few years China has been providing new on many of what I sell for for less than I can sell used. What used to be profitable is no longer.
"Also, I have had foreign customers get very upset because of tariffs they have had to pay when I shipped to their countries. None of what Trump is applying the tariffs will directly impact consumers.
"It is about time we leveled the playing field. Trump's goal is free trade which we have not had for a long time. Most other countries tax our goods and we have not been taxing theirs. Restoring good paying jobs to the US worker is what we need to Make America Great Again." |
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