Trade deficit hits new record in June

Just picked up this Reuters story on MSNBC
U.S. trade deficit widens, hitting a record
Biggest exports drop in three years, record imports reported

The U.S. trade deficit widened much more than expected in June, hitting a record $55.8 billion as the biggest drop in exports in nearly three years combined with record imports, the government said on Friday.

Wall Street economists had expected the deficit to widen, but looked for a gap of just $47 billion. In its report, the Commerce Department also revised May's trade shortfall to $46.9 billion from the previously reported $46.0 billion.

I'm one of those liberals that agrees with free trade, but this shows that we are not managing our trade relations in a way that can handle free trade.   We need to be exporting more, not less products.  We need to be making more, not less products, but that's another story.  

•  trade deficit

  Perhaps this is simplistic thinking, but the trade deficit says to me that we consume more than we produce. I don't think the problem is that we aren't producing enough. The problem is that we buy tons of tacky bullshit that quickly ends up in a landfill somewhere. Just say no to consumerism. It's accelerating the depletion of the planet's resources and it doesn't really improve the quality of our lives.

  by miasmo on Fri Aug 13, 2004 at 02:14:58 PM PDT

•  Balance the Trade Deficit

  We need to place a value on jobs that we "export" to other countries.

  Remember not too long ago when a Bush Administration official (think it was a Cabinet Secretary) said that American jobs that are moved overseas are a form of export? We need to place a value on that "export".

  We'll come a hell of a lot closer to balancing the trade deficit that way!

  by clueless on Fri Aug 13, 2004 at 02:19:52 PM PDT

•  In a Western Civ class I took once...

  They presented a hypothesis about a factor leading to the decline of the Roman Empire, which this type of news reminds me more and more of.

  As I remember, in the latter days of the Empire, ALLOT of their wealth, gold in particular, was moving to the east in trade for spices, silk, and other luxuries. Over time the net decrease in wealth would've contributed to a weaker internal economy and military.

  Of course, this class was several years ago - but I think there is some similarity there.
  

  by xyro on Fri Aug 13, 2004 at 02:20:10 PM PDT