"The U.S. trade deficit surged in November as a growing consumer appetite for imported goods such as smartphones and cars more than offset a much smaller rise in exports. The trade deficit unexpectedly widened as imports jumped almost four times more than exports, gains that signal a rebound in global growth as well."
Using what we now know about (Imports- Exports), is this a good or bad sign for the American economy? Can it be both? Increases in buying power are usually met with praise by today's economists . But knowing what we do now about NSI, how is this a bad thing as well?
This article seemed mostly positive to me. Which is great to see because I feel that most of the economics articles I read lately are primarily negative. The reason I say mostly positive is because the article states, "Rising imports suggest an improving economy, because it means consumers are willing to spend more on imported goods." I found the part about the holidays and the iPhone 5 release interesting because I never really thought of daily purchases' effect on the trade gap. To answer your question, I guess I don't really know. The article praises rising imports but I don't think a large trade gap is necessarily good.
ReplyDeleteI think this can be a good sign. In terms of cars it means that car plants are able to start rehiring people. This is all because more cars need to be assembled, leading for our economy to start growing and being trusted in again.
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