Last month, with the release of the June trade results, I began tracking our trade deficit with S. Korea, now that the trade deal with that nation that President Obama hailed as a big win for American workers, has been in effect since March. Through June, our trade deficit was 18% worse than the same four-month period in 2011.
Yesterday, the BEA (Bureau of Economic Analysis) released figures for the month of July. Our trade deficit with S. Korea widened further, now running 21% worse than the same five-month period last year.
Before the trade deal was enacted, I predicted that it would actually drive our trade deficit with S. Korea higher, based solely on the fact that S. Korea is 15 times as densely populated as the U.S. So far, it looks like a good call. And, when you understand the role of population density disparities in driving global trade imbalances, it was an easy call to make. Too bad for American workers that economists and our political leaders don’t understand it. Looks like we can kiss more American manufacturing jobs goodbye. Thanks, President Obama.