This article from the Financial Times describes how the U.S. trade gap is the widest it has been in awhile. This gap was unexpected and various employed economists were disappointed to see the gap increase.
Love the topic! In my opinion I don't think the progression of trade and globalization is the problem, but rather the United States’ stance on trade compared to the rest of the world. As highlighted in the article, there was an increase in the U.S. trade gab due to “a surge in consumer goods imports.” Rather then cutting imports the United States needs to increase exports! As a leader in services, technology, and education the United States has a lot to offer the rest of world. Politicians need to create more incentives for firms to have foreign connections and export their products or services. Bottom line, the world we are living in is growing to be more globally connected and the United States needs to maintain their stance as world power through increasing trade. I would like to see the U.S. implement laxer tariff regulations and an increase in world trade agreement.
I agree with you Bianca, especially the part that "Politicians need to create more incentives for firms to have foreign connections and export their products or services." I think that this could really increase our exports. Another thing to keep in mind as far as trading goes, many foreign countries are beginning to crack down on cheap child labor. As this happens, more manufacturing jobs will move to the U.S. Also, as production automation (robots working assembly lines instead of people) begins to grow, the U.S. will have the engineers and technology to run these machines, which should also increase our exports (although this could lead to a lot of unemployment).
While many economists were disappointed with this gap increase, I think it is important to note that some, such as Millan Mulraine who argues that "it could be an encouraging signal that domestic growth momentum may be improving." It should also be noted that, though fairly minimal, there was a one percent rise in exports.
I'm with Joe-- although it would certainly be beneficial to have a higher increase in exports, it's a good sign that Americans are consuming more. Consumer confidence plays a huge role in our economic climate.
ReplyDeleteLove the topic! In my opinion I don't think the progression of trade and globalization is the problem, but rather the United States’ stance on trade compared to the rest of the world. As highlighted in the article, there was an increase in the U.S. trade gab due to “a surge in consumer goods imports.” Rather then cutting imports the United States needs to increase exports! As a leader in services, technology, and education the United States has a lot to offer the rest of world. Politicians need to create more incentives for firms to have foreign connections and export their products or services. Bottom line, the world we are living in is growing to be more globally connected and the United States needs to maintain their stance as world power through increasing trade. I would like to see the U.S. implement laxer tariff regulations and an increase in world trade agreement.
I agree with you Bianca, especially the part that "Politicians need to create more incentives for firms to have foreign connections and export their products or services." I think that this could really increase our exports. Another thing to keep in mind as far as trading goes, many foreign countries are beginning to crack down on cheap child labor. As this happens, more manufacturing jobs will move to the U.S. Also, as production automation (robots working assembly lines instead of people) begins to grow, the U.S. will have the engineers and technology to run these machines, which should also increase our exports (although this could lead to a lot of unemployment).
ReplyDeleteWhile many economists were disappointed with this gap increase, I think it is important to note that some, such as Millan Mulraine who argues that "it could be an encouraging signal that domestic growth momentum may be improving." It should also be noted that, though fairly minimal, there was a one percent rise in exports.
ReplyDeleteI'm with Joe-- although it would certainly be beneficial to have a higher increase in exports, it's a good sign that Americans are consuming more. Consumer confidence plays a huge role in our economic climate.
ReplyDelete