The US Census Bureau’s Bureau of Economic Analysis released the latest monthly U.S. trade figures last week. And we have a winner — September’s $30.5 billion monthly goods trade deficit with China sets a new record.
Also in September, the overall U.S. international goods and services trade deficit rose to $41.8 billion, up from $38.7 billion in August, (revised).
The trade deficit is the real deficit we should worry about. The trade deficit drains jobs and money from our economy. Last week economists Jared Bernstein and Dean Baker wrote in the NY Times, in Taking Aim at the Wrong Deficit,
Simply put, lowering the budget deficit right now leads to slower growth. But reducing the trade deficit would have the opposite effect. Not only that, but by increasing growth and getting more people back to work in higher-than-average value-added jobs, a lower trade deficit would itself help to reduce the budget deficit. (more…)