RIP Philo

Balance of Trade

https://www.census.gov/foreign-trade/statistics/historical/exhibit_history.pdf


Trade deficit running 45-50B a month
Steady
Surplus in services
Deficit in goods



Thoughts?
Permalink Spam king 
June 9th, 2018 7:46am
It's a grossly misleading metric, though.

The best example is the Apple iPhone. When an Apple iPhone comes from China, it counts as a "trade" for the full retail value of the iPhone. Yet when an American consumer buys that iPhone the overwhelming bulk of the money goes to Apple of California. When that same iPhone goes to Canada it again counts as an import from China, but again the vast bulk of the money goes to the USA. Etc.

Dumbshit Trump is playing a fool's game -- the US is a winner on virtually every trade front (hence being one of the richest countries on the planet).
Permalink Rusewoman 
June 9th, 2018 8:17am
Good points
Permalink Spam king 
June 9th, 2018 8:21am
>when an American consumer buys that iPhone the overwhelming bulk of the money goes to Apple of California

Doesn't most of it stay offshore with corporate Apple?
Permalink Dirac Angestum Gesept 
June 9th, 2018 8:25am
They got a recent tax exemption that allowed them to federate it at a much lower rate.

However even if it did, it doesn't really matter. That company overwhelmingly employing Americans, lead by Americans, is the richest company on the world and can buy up everyone. The same thing companies like Google (who also makes their money around the world), Microsoft, etc.

Trump keeps whining about Canada, generally about absolutely tiny, petty things (like Canada's supply management that restricts some realms, though the US still ships more dairy to Canada than the reverse...), but Canada has a massive trade deficit with the US courtesy of services. Being beside a giant, with a homogenized economy, a lot of services naturally simply moved to the US. And when US companies bought Canadian companies they'd always move that headquarters South. Canada has lagged behind similar European countries for years, with higher unemployment and lower per capita wealth, because it has allowed itself to be looted like this. But if you look at just raw numbers of goods moving, you don't see that. Instead you see the car that was 80% US parts and assembled in Canada, and whose profits go entirely to the US.
Permalink Rusewoman 
June 9th, 2018 8:40am

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