When the trade deficit and Obama's export initiative collide
This week, the U.S. Commerce Department released the latest monthly U.S. trade figures. The report showed another rise in the overall U.S. international goods and services deficit: clocking in at a $38.8 billion in August, $29.9 billion of which was with one country, China.
To combat deficits, the Obama Administration has focused on doubling U.S. exports by 2015 — and it's been quite successful. But focusing all of our attention on exports ignores the fact that imports have increased too.
ReMaking America author Harry Moser explains how the trade deficit and the Administration’s export initiative collide:
In fact, although America’s exports have grown by 40 percent since President Obama started his “Export Initiative” in 2009, imports have grown even more — by 42 percent, and from a larger base. The best efforts of the administration have failed to lower the trade deficit in goods, which instead skyrocketed by $230 billion on an annual basis to $736 billion in 2012. Clearly, the strategy is not working.
We need to cut our imports for the Administration’s export initiative to be successful. A good start would be ending China’s currency manipulation.
There is a bill in Congress that would punish China for its currency manipulation. Please send your Member of Congress a note requesting that they support the Currency Reform for Fair Trade Act.
Order a copy of ReMaking America right here.
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