Who Knew Trade Was So Complicated?

Discussion in 'Off-Topic' started by Sokolov, Dec 2, 2018.

  1. Sokolov

    Sokolov The One True Cactuar Desert Owl Games

    https://www.washingtonpost.com/busi...es-trade-deficit-its-track-be-biggest-decade/

    Under Trump’s watch, the U.S. is on track for the highest trade deficit in 10 years

    For the first half of 2018, the trade deficit in goods and services hit $291.2 billion, the federal government reported Friday, which is higher than last year and puts the nation on track to have the largest annual deficit since 2008.

    Trump has repeatedly promised to reduce the trade deficit during his White House tenure, but so far, it has grown under his watch.

    He claims America’s “massive” trade deficit is a sign the country is getting beaten by China, Germany and others, and he blames the deficit on “very stupid” trade deals. Most economists do not view the trade deficit as a problem. They point out that a big driving factor behind the higher trade deficit this year is that U.S. consumers are buying more stuff. That’s happening largely because the U.S. economy is doing well and people feel bullish enough to shop more for goods. Trump’s tax cuts have also helped fuel the buying spree for foreign products.

    “While the administration is intent on reducing the trade deficit — which it wrongly perceives to be the result of unfair trade practices — the implementation of a late-cycle fiscal stimulus package will put further upward pressure on the trade deficit in the coming months,” said Gregory Daco, head of U.S. economics at Oxford Economics, a research firm.

    ~

    It's almost like Trump has no idea what he is talking about or doing. The only thing you can say about him is that he talks a big game but accomplishes every little.

    Oh, and before you try and give Trump credit for the economy... it's doing well despite Trump, not because of him. Most of his policies and actions have introduced uncertainty in the market and increased consumer prices. And even long-term metrics like job growth is functionally the same trend as it had been under Obama post-recession:
    upload_2018-12-2_0-14-14.png


    For other examples:

    Trump on Carrier: Saved 1,100 jobs
    Reality: Hundreds laid off after thinking their jobs were saved, and morale is down as remaining workers believe the factory will be shut down eventually and that owners are just delaying for political purposes

    Trump on GM: Will create "tremendous number of jobs" in Michigan and Ohio
    Reality: Closing factories in both states and laying off 15% of salaried workers

    Trump on Foxconn: Will create jobs
    Reality: 4.5 billion in taxpayer subsidies for a Chinese factory that will ultimately largely employ workers from China

    Trump on Ford: They will scrap Mexico factory and come back to the US
    Reality: Production of Ford Focus moved to China from Mexico

    Trump on Tax Cuts: For middle class and will pay for itself
    Reality: Mostly for the wealthy (their's are permanent), cuts for lower/middle classes are very small will automatically expire... and deficit has exploded
     
    Geressen likes this.
  2. PoxBot

    PoxBot Well-Known Member

    Good Bane Shift. I don't like how much I get taxed.
     
  3. st3ck

    st3ck I need me some PIE!

    It's that 5 dimension chess he's playing. Talk about wanting to lower something that usually points to other factors (strong consumerism, and ballooning budget deficits), pass laws that actually help increase it, and then take credit for riding the wave of things done almost 9 years ago.

    Maybe there is still hope he can get Mexico to pay for the wall (not build it, can't be taking American jobs), or better yet, drain the swamp.

    Next presidential platform for whoever runs against Trump should be Flush the Toilet.

    Edit* don't get me wrong though, I complain about every President, despite voting for every elected president since 2008.
     
  4. Sokolov

    Sokolov The One True Cactuar Desert Owl Games

    #blamest3ck
     
  5. st3ck

    st3ck I need me some PIE!

    I just like to think I have a high success rate of picking presidents.
     
    Sokolov likes this.

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