As reported by the Bureau of Economic Analysis this morning, the trade deficit widened more than expected in September, as imports rose and exports fell. The trade deficit worsened for the third straight month, rising to $41.8 billion. Here’s the chart: Balance of Trade.
The jump in the trade deficit was due entirely to a jump in imports and a decline in exports of manufactured goods. The trade deficit in manufactured goods worsened to nearly equal the worst level of the Obama administration. Here’s the chart: Manf’d Goods Balance of Trade.
You may recall that in January of 2010, President Obama vowed to double exports within five years. Exports have now remained flat for 19 months. In fact, if the president had followed through with this promise, the U.S. would have enjoyed a trade surplus of $8 billion in September instead of a deficit of $41.8 billion – a difference of $50 billion per month. Here’s the chart: Obamas Goal to Double Exports. Most of the shortfall was in the category of manufactured goods: Manf’d exports vs. goal.
Obama’s failure to follow through with his promises on trade – first to rewrite NAFTA (never happened) and then to double exports (isn’t happening), is consistent with the lack of follow-through in implementing “Obamacare” and other broken promises like energy and global warming initiatives. It’s now painfully obvious to all that this guy is “all blow and no go.” His administration is completely inept.
It’s just sad. Most people, including democrats, believe the nation is heading in the wrong direction, just as they’ve believed for many years now. There was so much hope when Obama was elected. Now it’s become clear that we’ve been saddled with yet another do-nothing, bench-warming president when it comes to improving life for the American people. And we can look forward to another wasted three years, during which this administration will accomplish nothing.
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Before leaving the subject of the September trade deficit, it’s worth noting a couple of additional items:
Our trade deficit with China hit another new record in September – $30.5 billion, beating the previous record set only 2 months earlier.
- Since enactment of Obama’s trade deal with South Korea in March of 2012 – a deal that Obama hailed as a “big win” for American workers – our trade deficit with South Korea has soared. It’s on pace to finish 2013 at $21 billion, 30% worse than 2012 and a 100% increase since 2010.