As reported by the Bureau of Economic Analysis this morning, the trade deficit jumped in May to $45.0 billion, the worst performance in six months, as exports fell and imports rose sharply, led by manufactured imports. Balance of Trade
In January of 2010, President Obama set a goal of doubling U.S. exports in five years. In May, exports lagged that goal for the 20th consecutive month, and by the largest margin yet – $40.9 billion. In order to keep pace with the goal of doubling exports, they needed to increase by $27.2 billion in the last 12 months. Instead, they have risen by only $1.9 billion. Obamas Goal to Double Exports
Even worse, manufactured exports have actually declined in the past year, and now lag the president’s goal by $26.1 billion – also the worst shortfall since the president set that goal. Manf’d exports vs. goal. The trade deficit in manufactured goods jumped by $3.5 billion to $42.6 billion (accounting for nearly all of our overall trade deficit), continuing its decades-long worsening trend. Manf’d Goods Balance of Trade.
Remember the big trade deal that President Obama signed with South Korea in March of last year, hailing it as a big win for American workers? In May, the U.S. trade deficit with South Korea jumped to a new record, surpassing the previous record set only one month earlier. The U.S. is on pace for a trade deficit with South Korea in 2013 of $22.7 billion. The previous record, set in 2004, was $20.0 billion. No surprise.
And, oh, by the way, remember the supposed suspension of trade privilieges for Bangladesh following the clothing factory collapse that killed over a thousand people? The trade deficit with Bangladesh continued unabated in May.
Something that will probably go unnoticed by the media is that in May, for the first time, imports of food ($9.9 billion) exceeded exports ($9.8 billion). Long dependent on imported energy, thanks to worsening overpopulation, the U.S. is now dependent on imported food as well.
President Obama’s trade policies have been an abysmal failure. It’s consistent with his track record of making grand proclamations and promises, with zero follow-through. Just yesterday, the Obama administration very quietly delayed a key provision of its health care overhaul. It seems that they don’t want to risk driving employers out of business at a time when unemployment remains above 10% and the economy is teetering on the edge – especially with an election looming next year.
When is the media going to call out the president on these blatant failures? Why does this guy keep getting a free pass?