Biden Tackles Minor Corporate Abuses While Ignoring the Biggest and Most Obvious

July 11, 2021

As reported in this Reuters article, Biden has signed an executive order that tackles many corporate abuses in an effort to help American consumers. Good for him. Many of these actions have been long overdue. But he has completely ignored the one “corporate abuse” that dwarfs all others in terms of its impact on American workers. I’m talking about the trade deficit and the practice of off-shoring millions of manufacturing jobs.

To his credit, while ignoring the abuses that Biden addressed with this executive order, Trump is the only president since World War II who took the trade deficit seriously and took concrete steps to address it.

You may wonder why I focus so much attention on the trade deficit since the purpose of my book, Five Short Blasts, and the purpose of this blog, is to raise awareness of the economic consequences of overpopulation – namely, that falling per capita consumption as over-crowding worsens must inevitably drive up unemployment and poverty. And poverty kills. Ultimately, if nothing else gets us first, it will prove to be mankind’s undoing.

It’s really not that hard to understand once you understand that increasing over-crowding as the population continues to grow inevitably drives down per capita consumption and, along with it, the need for labor. People living in crowded conditions live in ever-smaller dwellings. They own little furniture and appliances because there’s no room for them. They own less clothing because of a lack of closet space. They don’t have yards and gardens, so they don’t need tools to maintain them. They don’t own cars because roads are choked with traffic and there’s no place to park. So they don’t have garages. They don’t participate in sports because there’s nowhere left to play them. They don’t engage in recreational boating because launch and dock space is all taken.

You get the idea. But what does this have to do with trade? Consider a country with a reasonable population density. Let’s say there’s 100 million people in this country. Their lifestyle resembles that of the U.S. Now suppose that they engage in free trade with another nation that is far smaller – say one tenth the size – but also has 100 million people. It’s ten times as crowded and people live in conditions like those described in the previous paragraph. For that reason, their consumption is only half that of the first country.

Through free trade, these two countries, though each is still a sovereign state with borders, behave economically as one country. The work of manufacturing the products that their combined population needs is spread evenly across the work force, but the consumption of those products isn’t. Consumption in the 2nd country remains low because of their over-crowding. The end result is that the first country has lost 25% of their manufacturing jobs and has lost even more in terms of market share. In essence, the first country has been forced to pay the price for the 2nd country’s overpopulation.

By trading freely with the 2nd country, the first country has immediately taken on the economic traits of a country twice as populated – something it would have taken decades to happen through the course of normal population growth. Worsening unemployment and poverty are the inescapable consequences of free trade with overpopulated nations. This is why my concern for the economic consequences of overpopulation has driven me to put such heavy emphasis on trade.

With all of that as a backdrop, what has Biden done to address our massive trade deficit – now an annual one trillion dollars in trade in manufactured goods? Absolutely nothing. Oh, he’s paid some lip service to wanting to help American workers and has encouraged us to “buy American.” But he’s done nothing about our trade policy and hasn’t spoken a word about our trade deficit.

As reported this past week by the Commerce Department, our trade deficit in May continued to hover at a near-record level of $71.2 billion, the 2nd worst reading ever since setting a record of $75 billion in March. In fact, in his first four full months in office for which trade data is available – February through May of this year – Biden owns the four worst monthly trade deficits ever recorded.

Our largest trade deficit is with China. Thanks to Trump’s enactment of 25% tariffs on half of all Chinese imports, however, that deficit isn’t nearly what it once was. Our annual deficit with China peaked at $418 billion in 2018. Thanks to Trump’s tariffs, that fell to $344 billion in 2019, and fell again in 2020 to $310 billion. So far this year, it’s on track to remain at that level.

Trump left Biden the perfect tool to build on that progress. In January, 2020, he got China to sign the “Phase 1” trade deal which held at bay his threat to extend his tariffs to all Chinese imports in exchange for China’s agreement to dramatically increase their imports of American goods. What’s happened? China is failing miserably in its commitments and, not only has Biden done nothing to enforce the agreement, he hasn’t even acknowledged that the Phase 1 trade deal even exists. So far, through May, China is 39% behind its commitment on manufactured products, 43% short of its goal for agricultural products, and is a whopping 78% short of it goal for energy products. They’re barely exceeding their imports in 2017 which formed the baseline for the agreement.

So far, the Biden administration makes a good show of supporting American workers but, on this most critical issue – the one that would help us the most – all we hear from the White Houe is …….. the sound of crickets.


No One’s at the Wheel

May 13, 2021

As reported last week by the Commerce Department, the United States’ trade deficit in goods soared to a new monthly record in March of $91.6 billion – an annualized deficit of $1.1 trillion – led by a near-record deficit of $88.7 billion in manufactured goods. Here’s a chart of that deficit in manufactured goods dating back to 2010 when the monthly deficit was only $37 billion, an increase of 140 % in eleven years.

In 2010, the goods deficit with China accounted for half of our total goods deficit. In March of this year, that was down to 30%. Since October of 2018, the goods deficit with China has fallen by 36%. During that same time frame, the goods deficit with the rest of the world has skyrocketed by 580%. Think about that. A 580% increase with the rest of the world vs. a 36% decline in the goods deficit with China! That’s absolutely astounding!

That disparity in trade results in only 2-1/2 years demonstrates the power of tariffs in shaping global trade. The 25% tariff that Trump slapped on half of all Chinese imports in 2018 was a shot to the head – a bullet right between the eyes – for China’s ambitions to dominate global trade. Say what you will about Trump, but he was the first president since World War II to defy the free trade advocates and the World Trade Organization to enact such a bold tariff program. His only mistake was not extending the tariffs to a number of other overpopulated nations that feed on America’s economy to support their bloated labor forces.

But at least he left Biden with a powerful tool to slash the goods deficit with China even further – a proven tool that could be extended to other countries to finally restore a balance of trade. I’m talking about the “Phase 1” trade deal that Trump struck with China – a deal that would have forced them to dramatically step up their imports of American goods, or face the consequence of having that 25% tariff extended to all Chinese imports. The results were predictable. (In fact, I predicted China’s failure from the moment the deal was signed). They ended 2020 by falling short of their mututally-agreed goal by $62 billion, a full one third short of their goal. Through the first quarter of 2021, they’re on track to fall short of their 2021 goal by $127 billion.

So what has Biden done? Nothing. While expressing a desire to help American manufacturing, he’s been dead silent on the subject of our trade deficit and has never even mentioned the trade deal with China which they continue to blatantly ignore. The dashboard of America’s economy has a huge, glowing red gauge right in the middle that monitors our trade performance. The problem is that, like that Tesla in Texas that sheered in half against a tree as it rounded a curve, there’s no one at the wheel. Biden’s asleep in the passenger seat, oblivious to what’s happening in global trade and the devastation to our manufacturing economy. We’re approaching that curve and all we hear is snoring.


Driven by population density disparities, U.S. trade picture darkens again in 2020

May 6, 2021

In recent posts, we’ve examined America’s trade results in 2020 and found that, at least at the opposite ends of the spectrum, our worst trade deficits and our best trade surpluses were overwhelmingly driven by one factor alone – the population density of our trade partners. Now let’s look at the whole picture – our trade results with the entire world. If population density is such a huge factor, let’s divide the world’s nations in half and see how we did with the nations whose population densities were above and below the global median which, by the way, is 196 people per square mile. Here’s a chart that shows those results and has tracked them for the past sixteen years: https://petemurphy.files.wordpress.com/2021/05/balance-of-trade-above-below-median-pop-density-2.pdf

With the more densely populated nations of the world, the U.S. suffered a trade deficit in manufactured goods of $894 billion in 2020, blowing away the record of $842 billion set only one year earlier. With the other half of nations, the deficit was only $17 billion. That’s a huge difference. The deficit with the more densely populated nations was more than 52 times larger than the deficit with the less densely populated nations.

But wait. The theory is that disparities in population density drive our trade imbalance. So the U.S. is likely to have a deficit with any nation more densely populated than our own, and our own density is 93 people per square mile, less than half of the global median. So let’s divide the world’s nations at that level. If we do, the deficit with more densely populated nations grows to $999 billion in 2020, while our trade balance with less densely populated nations was actually a surplus of $88 billion.

Economists and free trade advocates in general claim that it’s actually low wages that drive trade imbalances. Does that claim hold water? In 2020, with the half of nations who are the poorest, the U.S. had a trade deficit of only $120 billion. With the wealthier half of nations, we had a deficit of $791 billion – almost seven times larger! Not only is the low wage theory invalid, the data shows that the relationship between wages and trade imbalance is exactly the opposite. It makes sense when you think about it. Countries who manufacture for export and maintain large trade surpluses with the U.S. grow richer. If they are sparsely populated, the trade imbalance soon equalizes when they run out of labor capacity. But if they are very densely populated, their trade surplus will persist.

It absolutely baffles me that no one else is able to make the connection between population density and trade imbalances. I’ve been tracking this data for sixteen years and, with each passing year, the effect distorts our trade imbalance even more. The manufacturing sector of our economy is being destroyed and is doing real damage to the economy as a whole. As I write this, our auto industry has been driven to its knees by its inability to provide itself with computer chips. Our dependence on imports has become an existential threat. Yet our leaders turn a blind eye. They see the enormous trade deficit and put no effort whatsoever into even understanding it, much less actually doing something about it. Our trade policy amounts to nothing more than a global welfare program, providing the world with manufacturing jobs at the expense of our own workers. It makes me sick.

Oh, it gets worse. Next we’ll look at the latest trade data released this week for the month of March.


America’s Best Trade Partners

April 30, 2021

What’s it take to make the list of America’s 20 best trade partners? “Man-for-man,” (in other words, on a “per capita” basis) buy more from America than you sell to it. That’s it.

In my previous posts, we looked at our biggest trade deficits and biggest trade surpluses in 2020 and found that the population density of our trading partner was, by far, the biggest factor in determining whether our balance of trade would be a surplus or a deficit. On the surplus side, whether or not a country was a net oil exporter was also a factor, since all oil throughout the world is priced in U.S. dollars.

In my last post on the subject, we found that our biggest trade surpluses were with either sparsely populated countries or net oil exporters. But the list included both very large and very tiny countries. So let’s factor size out of the equation and see if population density is still a factor. Let’s look at the list of our biggest per capita trade surpluses in 2020. Here’s the list: America’s best trade partners in 2020.

The population density effect isn’t as clear on this list until you look at the population density of this group of nations as a whole – 22.5 people per square mile. Compare that to the density of the group of nations on the list of our twenty worst trade deficits – 360 people per square mile. Of the twenty nations on this list, thirteen are tiny nations, most of which are oil exporters. Two nations dominate this list – Canada and Australia – huge nations, comparable in size to the United States, with population densities of eleven and nine people per square mile respectively (compared to 93 people per square mile in the U.S.). Together, they account for 31% of our total trade surplus with the nations on this list.

This is a sad list. First of all, it doesn’t take much to make this list. If I were a country and I bought one recliner chair from the U.S., I’d be right at the top of the list. Secondly, our trade surpluses with the nations on this list has fallen by almost 9% over the past ten years. With the two dominant nations on the list – Canada and Australia – our surplus has declined by 33% and 34% respectively. Compare that to the 147% increase in our deficit with the nations on the list of our top 20 worst deficits. Also, consider that Djibouti made it onto this list of our top twenty surpluses solely on the basis of U.S. foreign aid to Djibouti. They didn’t even buy stuff from us. We gave it to them.

The fact is that American manufacturing is dying. 2020 marked the 45th consecutive year of ever-increasing trade deficits. We make less and less with each passing year, are forced to buy more from foreign countries, selling them less, and we export our high-paying jobs to them, all because we’re too stupid to factor the role of population density into our trade policy and apply tariffs to the most densely populated. In his first 100 days in office, President Biden, while proclaiming his desire to help American manufacturing, hasn’t levied a single tariff. He hasn’t lifted a finger to do anything meaningful to help American manufacturing workers.

So now we’ve looked at the two extremes of the trade spectrum – our twenty worst trade deficits and our twenty best trade surpluses. But that’s only 40 nations out of the more than 200 hundred around the world. Will the population density factor still be evident in 2020 when we look at trade with the entire world? We’ll see in one of my next posts.


America’s Worst Trade Partners in 2020

April 2, 2021

In my previous post, we examined the list of America’s biggest trade deficits in 2020 and saw that most of them were with nations that are far more densely populated than the U.S. Clearly, population density was a factor, but the list included nations from around the world that were both big, like China and small, like Vitenam and Ireland just to name a couple.

Today, we’ll look at America’s balance of trade from a different perspective. Which nations, man-for-man, do the most damage to America’s economy by exporting to us more than they import from us – effectively feeding off of America’s economy at America’s expense? In other words, in per capita terms, which nations are our worst trade partners?

Here’s the list of America’s Worst Trade Partners in 2020. If you’re new to this blog, there are couple of big surprises on this list:

  1. You probably expected to see China at the head of this list. In fact, they don’t make the list at all. China ranked 22nd in 2020.
  2. At the top of the list you see Ireland and Switzerland, both of whom are more wealthy than the U.S. If low wages drive trade deficits, as we’re led to believe by economists, then how the heck did two of the world’s most wealthy nations make it to the top of this list?

To understand the reason for these surprises, take a look at the population density of these nations. Of these 20 nations, 17 are more densely populated than the U.S., which has a population density of 93 people per square mile. The average population density of these 20 nations is 526 people per square mile, more than five-and-a-half times that of the United States.

Low wages drive trade deficits? Hardly. Now look at the “purchasing power parity” (or PPP, analagous to wages) of the people of these nations. These are not poor nations. Only four of these twenty nations – Mexico, Vietnam, Thailand and Cambodia – have a PPP below $25,000, which is what the U.S. considers a poverty level for a family of four. Conversely, four of these twenty nations – Ireland, Switzerland, Denmark and Austria – are on a par with, or above, the PPP of the United States, which had a PPP of about $57,000 in 2020. The average for these 20 nations is $41,518.

Also, note that our trade deficit with 18 of these twenty nations is actually accelerating, even our deficits with the two nations at the top of the list who are wealthier than us.

In conclusion, there is a very powerful relationship between population density and the balance of trade evident in this list. Conversely, there appears to be no relationship whatsoever to wealth. This is important. Economists claim that trade deficits are driven by low wages, which is no cause for concern, as those wages will rise with time and restore a balance of trade. Thus, free trade works. But what we’ve seen in this post and the previous one is that this claim is simply not true. Free trade with densely populated nations doesn’t work because trade deficits are driven by population density and will never self-correct, no matter how high wages rise.

If trade imbalances are driven by disparities in population density between two trading partners, then we should see the opposite effect at the other end of the spectrum. We should see trade surpluses with more sparsely populated nations. We’ll take a look at that in my next post.

For an understanding of exactly how population density has such an effect on the balance of trade, read my book, Five Short Blasts, or read my series of posts begining with “Five Short Blasts” Theory Explained, Part 1.


America’s Worst Trade Deficits in 2020

March 29, 2021

Many people – perhaps most – have little understanding of the economic impact of the balance of foreign trade. The best way I can explain it is to use your own checking account as an example. If more money is drawn out of your account than the income that goes into it, then you’re steadily getting poorer and, if kept up long enough, you’ll eventually be broke. Until you reach that point, you create an illusion of prosperity by buying more than you can afford, but it’s just that – an illusion. Your day of reckoning – of financial ruin – is fast approaching.

The United States, just like every other nation, has a national account that’s very much like your checking account. Influxes of money, like income taxes, other federal taxes, tariffs on imports and the money collected from foreign entities for exported goods make us richer. Conversely, outflows are bad – like money spent by the federal government (for defense, domestic programs, etc.) and money spent on importing goods. Those make us poorer.

Therefore, our balance of trade with the rest of the world makes us either richer or poorer, depending on whether it’s a surplus or a deficit. And we’re not just talking about red numbers on some obscure balance sheet deep within the Department of Treasury. A trade deficit hits you directly in the wallet. For every $50,000 increase in the trade deficit, another American’s job is lost. If it wasn’t your job, you’re still hit in the wallet when an ever-growing number of unemployed compete for your job and put downward pressure on your wages. Do the math. Since our last balance of trade in 1975, the deficit in manufactured goods has grown by $1 trillion. Divided by $50,000, that’s a loss of 20 million high-paying manufacturing jobs. The downward pressure on wages has been enormous.

With all that said, let’s take a look at how we did in 2020. Each year I think to myself that America’s trade picture couldn’t get worse, but each year it does. The year 2020 was no different. If anything, our downward spiral accelerated. Our deficit in manufactured goods came in at $911 billion, blowing past the “old” record of $831 billion set only one year earler. Which countries were our worst trading partners? Here’s the list: America’s 20 worst trade deficits in 2020.

First of all, look at the total deficit for these twenty countries. It was $1.001 trillion. That’s more than America’s trade deficit with the entire world. In fact, our entire trade deficit is due to our deficit with only the top twelve nations on this list. Think about that. Take away those twelve nations, and the U.S. enjoys a balance of trade with the other 216 nations of the world.

Now look more closely at the list. It’s no surprise to see China at the top. They’ve been there for at least the last fifteen years. What is a surprise is that the deficit with China fell precipitously in 2020, from a record high of $416 billion in 2018. Why? Because of the 25% tariffs that the Trump administration imposed on half of all Chinese imports. It’s proof that tariffs work.

Unfortunately, those tariffs on Chinese imports also explain, at least in part, the explosive growth in the deficit with other nations, most notably Vietnam. Companies scrambled to move their manufacturing operations out of China to avoid the tariffs. Trump should have applied the tariffs to these other countries as well, leaving companies no alternative but to bring their manufacturing back to America.

Note that most of the nations on this list are actually quite wealthy, high-wage nations, on a par with the U.S. (Ireland and Switzerland are even wealthier.) This casts doubt on economists’ claim that low wages are the driving force behind trade deficits. So if low wages don’t drive trade imbalances, what does? The list includes nations both very large and very small, and nations from Europe, Asia and Central America. Is there something that these nations have in common – something that should be factored into our trade policy to return us to a balance of trade?

Indeed there is. Look at the population density of the nations on this list and note that all but one (Sweden) are more densely populated than the United States, which has a population density of 94 people per square mile. Most are far more densely populated. The average population density of the nations on this list is six times greater than the U.S. There clearly seems to be a relationship between population density and balance of trade. But why? What is it that makes people who live in more crowded conditions poor trade partners for the United States?

We need to look at this more deeply. We need to factor out other variables, like the sheer size of nations, which puts China at the top of this list with a deficit three times bigger than the next nation on the list – Mexico – which is only one tenth the size of China in terms of population. In my next post, we’ll sort the nations of the world by population density and see how their balance of trade with the U.S. stacks up.


In a test of Biden’s backbone, China reneges on trade deal.

March 10, 2021

Under a threat by the U.S. to expand its 25% tariffs to all Chinese imports, In January of 2020, China signed the “Phase 1” trade deal with the U.S. They agreed to boost their imports of American goods significantly in 2020, followed by an equally large increase in 2021. Very specific goals were set for boosting its imports of manufactured goods, energy products, agriculture products and overall goods. And the consequences for failing to meet those goals were also very specific – extending the 25% tariffs that already were applied to half of all Chinese imports to include the other half.

When it comes to trade, tariffs are the only thing China understands. Those tariffs were devastating for China. Their surplus of trade with the U.S. shrank by roughly 25% as companies abruptly abandoned China and took their manufacturing elsewhere. China was desperate to avoid any more tariffs.

However, based upon America’s long track record of failure to follow through on virtually every trade deal it’s ever negotiated when the terms of the deal weren’t met, China figured the same would happen again. So far, they’re right. Their imports fell far short of the 2020 milestones. Actually, they didn’t just fall short of the 2020 goals. They barely exceeded the 2017 baseline in all four categories of goods. The U.S. didn’t utter a peep of protest.

Now the results for January are in. Their imports of total goods from the U.S. fell 37% short of the goal. Their imports of manufactured goods were 42% short, and their imports of energy products were 71% below the goal. Only their imports of agriculture products were close to the goal, falling only 5% short.

Biden has vowed to continue Trump’s tough stance against China. He has to act. The whole world is watching. This wasn’t some Trump executive order that he can choose to ignore. It’s a signed agreement between the United States and China. If he allows them to thumb their nose at this trade deal, we’ll have zero credibility with the rest of the world regarding trade and beyond. We’ll be seen as a patsy. The U.S. is being economically crushed by our trade deficit, not just with China but with many other nations that prey on the U.S. market to support their bloated labor forces at the expense of American workers. If Biden won’t show some backbone on this critical issue, then no one can take him seriously on anything.


January Trade Deficit: 2021 Off to a Bad Start

March 8, 2021

2020 was, by far, the worst year on record in terms of America’s trade deficit. To be sure, the COVID-19 pandemic was a big factor as imports of medical equipment and supplies exploded and COVID stimulus checks, intended to stimulate the U.S. economy, instead were used to purchase a flood of imported goods. Meanwhile, American exports felt the sting of a global economic slowdown. As a result, the goods trade deficit in 2020 was $915.6 billion, all of which – and a little more – was due to the deficit in manufactured goods, which tallied $919 billion. It’s not a stretch to suggest that America’s trade policy was actually a bigger drag on the American economy in 2020 than was the COVID-19 pandemic. Yet, the pandemic got all of the attention while the media, as usual, barely took notice of the trade deficit.

If January is any indication, don’t look to 2021 for any signs of hope. The report released by the Commerce Department on Friday revealed an overall trade deficit of $68.2 billion in January, the 2nd worst month on record and just $0.8 billion shy of the record set only two months earlier. The deficit in manufactured goods was worse – $86.5 billion, the 3rd worst month on record and just $0.7 billion shy of the record set the previous month. Annualized, the deficit in manufactured goods tops $1 trillion per year.

The only bright spot in the report is China, thanks to the 25% tariffs imposed by the Trump administration on half of all of its goods. The trade deficit with China came in at $310.8 billion in 2020 – bad, but a big improvement over the record of $419 billion set in 2018. In January of this year, the deficit with China was $26.25 billion – an annualized rate of $315 billion.

But even the news on China isn’t all good. I’ll cover how China did relative to the “Phase 1” trade agreement it signed with the U.S. in January, 2020 in my next post.

And there’s more bad news to be found in the January report that I’ll also cover in a subsequent post.


A Perfect Example of What Killed American Democracy

January 13, 2021

No sooner did I publish yesterday’s post, in which I blamed the Supreme Court’s “Citizens United” decision in 2010 for the death of American democracy, when a perfect example of that emerged.

Before I get into that, I have a question for you. What do you know about the U.S. Chamber of Commerce and your own local chapter? Is it a branch of the U.S. Commerce Department? Is its purpose to promote commerce in America? The name of the organization would lead you to believe that the answer to both of the latter questions is “yes.”

You’d be dead wrong. The Chamber of Commerce is a French-based organization whose sole mission is the promotion of “free” trade. (Check out this post from 2009 for an explanation of this fatally flawed economic theory and how it has devastated America’s economy.) The U.S. Chamber of Commerce is that French organization’s American-based operation. Your local Chamber of Commerce reports to and funnels funds to the U.S. Chamber of Commerce. Here, it’s worth noting that in 2019, France – a nation whose workers enjoy benefits American workers can only dream of – enjoyed a trade surplus with the U.S. of $19.9 billion, despite being arguably the least productive nation on earth.

The U.S. Chamber of Commerce and its local chapters makes a show of lobbying in favor of American businesses when issues important to them arise like taxes, regulations, minimum wage, etc. However, the effect of all of those issues combined is trivial compared to the one trillion dollars per year of business that is robbed from them through the world’s trade surplus with the U.S. On that issue, I challenge anyone to show me one single instance in which the Chamber has spoken out against the trade deficit and in favor of changes to trade policy aimed at restoring a balance of trade. No Chamber of Commerce organization, not the U.S. Chamber of Commerce or any one of its thousands of local chapters, has ever uttered a peep of protest about the U.S. trade deficit. The Chamber of Commerce masquerades as a pro-business lobby, all the while concealing the fact that it is working against American business on the one issue that dwarfs all others.

Thanks to the “Citizens United” decision by the Supreme Court, this French-based lobbying organization is considered to be an American “person” under the constitution. Its money – all the money collected in the form of membership fees from hundreds of thousands of American businesses that it strong-arms into joining its local chapters – is considered “free speech” which cannot be constrained under the 2nd amendment.

With all of that said, check out this article which appeared on Reuters yesterday. The CEO of the U.S. Chamber of Commerce accuses Trump of undermining U.S. democracy. Scroll to the bottom of the article, and read this:

“… in a nod to Biden’s progressive agenda, he said lawmakers should fund “rapid training programs” to connect the unemployed with jobs in new sectors of the economy.

Donohue also said the Chamber will push for a new bill to boost legal immigration to help businesses deal with a shortage of workers.”

Pushing “training programs” is a classic pro-free trade gimmick used for decades to placate workers who have lost their jobs to off-shoring. And, incredibly, even in the midst of a pandemic when sixteen million Americans are unemployed, the Chamber has the audacity to suggest that we need to continue flooding the U.S. with immigrants “to help businesses deal with a shortage of workers.”

Earlier in the article, the Chamber CEO vows to cut off funding from Republicans who supported Trump. Is it Trump’s rhetoric that concerns him, or is it really the fact that Republicans began supporting Trump’s efforts at levying tariffs in an effort to fix our trade deficit?

This is a perfect example of the demise of our democracy. Our politicians are bought-and-paid-for by global corporations and foreign lobbying organizations. Your only choice is between two candidates who, on the most critical issues, take the exact same position – the position they’re paid to take. This isn’t democracy.


Is the United States the stupidest nation on earth?

January 9, 2021

In light of the trade data released by the Commerce Department on Thursday, it’s difficult to draw any other conclusion. In November the trade deficit worsened to a new record of $64.5 billion. Actually, the situation is much worse than that. Strip away the surplus in services, which are little more than paperwork transactions, and you’re left with trade in manufactured goods, where real jobs are won and lost. Look at this chart. I would say that it couldn’t get any worse if it weren’t for the fact that with each passing month, it does. The deficit in manufactured goods hovered at the record level of $82.5 billion set only two months ago. That’s an annualized deficit of one trillion dollars.

Think about this. We’re paying the rest of the world a trillion dollars per year, putting their citizens to work making all the things we could just as easily make ourselves while, at the same time, we have tens of millions of people out of work. In fact, we’re paying trillions of dollars per year to pay our own people not to work. And we keep doing everything we can – as fast as we can – to make the situation worse. Ten years ago, in the wake of our most recent economic disaster, part of the auto industry bail-out was to allow Fiat to scoop up the Chrysler corporation, giving yet another foreign brand (the worst on earth, in terms of quality) an entry into the U.S. market, making the challenge for American cars that much worse. Building on that mistake, last month, FCA (Fiat-Chrysler of America) joined forces with PSA (the French automaker Peugot) forming a new company called “Stellantis,” giving Peugot access to the American market and, in all likelihood, finally killing the Chrysler brand.

Now we’ve elected as president a man who has spent his entire adult life championing policies that have exacerbated this decades-long downward spiral of our trade picture and, consequently, our entire economy. What little progress has been made under Trump he has vowed to rapidly undo.

If this situation doesn’t make the United States the stupidest nation on earth, I don’t know what would. And we wonder why this nation has become so divided and how there could be those among us so angry and frustrated that they’d be willing to riot and attack the capitol building. Trump was accused of lying to the American people about the election being stolen. I’ve consistently voted for candidates over these many years who have promised to do something about our trade deficit, and every one of them lied to us. Trump is accused of having blood on his hands for his role in fomenting the capitol building riot. For his part, Biden should accept blame for his role in formulating policies over the decades that have stoked the anger we saw unleashed on Thursday.

I remain angry and deeply disappointed with Trump for allowing his style and ego to get in the way of the bigger mission of Making America Great Again. The American people can forgive gaffes and rookie mistakes (being a rookie to the political scene), but they just couldn’t take any more of the daily barrage of personal insults that had nothing to do with the mission he was elected to do. It’s just sad to see it end this way.

It’s hard to see any hope of things improving for the United States. It angers me and makes me sick to say that. Since writing Five Short Blasts years ago, I’ve tried to keep this forum apolitical and focus instead on trying to explain the unseen economic consequences of population growth, including the danger of trying to engage in free trade with badly overpopulated nations. Maybe that’s been a mistake. So I’ll now say this: for decades Americans have been getting economically slaughtered like a flock of chickens. It’s hard to see any hope of things improving when you elect the fox to run the henhouse.