Trade Deficit with S. Korea Worsens in July

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: