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 9, 2021

In my last couple of posts, we’ve seen that, once again, in 2020, America’s worst trade deficits, in both absolute and in per capita terms, were with very densely populated countries. There seemed to be a clear link between population density and balance of trade. If there is such a link, then we should find the opposite effect at the other end of the spectrum. We should find that our biggest trade surpluses are with more sparsely populated countries.

Here’s the data – America’s biggest trade surpluses in manufactured goods in 2020. At first glance, the population density effect doesn’t seem as clear on this list. Half of these nations are less densely populated than the U.S. Among the other half, some are actually far more densely populated. There’s something else going on here. Note that I’ve highlighted in yellow six nations that are net oil exporters. This is important because the U.S. is virtually assured of having a trade surplus in manufactured goods with oil exporters, even if the U.S. itself imports very little oil from those nations. Why? Because all oil, worldwide, is priced in U.S. dollars. When an oil exporter like Saudi Arabia, for example, sells a barrel of oil, they’re paid in U.S. dollars. The only other place where U.S. dollars can be spent is in the United States. So Saudi Arabia then has no choice but to use those dollars to purchase American goods.

There are three very densely populated nations on the list – The Netherlands, Belgium and Guatemala – that can’t be explained away as oil exporters. The first two – The Netherlands and Belgium – are tiny adjoining nations who take advantage of their geographic advantage as the only seaport on Europe’s Atlantic coast to be ports of entry for U.S. goods for much of Europe.

Strip away the above effects of the oil trade and the role of The Netherlands and Belgium as ports of entry, and the effect of population density becomes clear once again. The average population density of this list is 265 people / square mile – high, but less than half that of the nations that comprise our twenty worst deficits. Also, the average is grossly exaggerated by the presence of very tiny nations on the list. The population density of this group of twenty nations, as a composite, is only 46 people / square mile. Compare that to the composite density of the twenty nations with whom we have our worst trade deficits – 499 people / square mile, more than ten times greater.

How about economists’ claim that it’s low wages that drive trade imbalances? That theory is debunked by this list of our trade surpluses, just as it was by the list of our trade deficits. The average purchasing power parity (or “PPP”) on this list is actually about $5,000 lower the average of the nations with whom we have our worst deficits – not a big difference, but it’s actually the opposite of what the low wage theory would predict. Whether our trade partners are rich or poor has absolutely no impact on our balance of trade.

Finally, there’s data in this list that should be cause for alarm. Over the past ten years, our average surplus with these nations has shrunk by 34% while our average deficit with the twenty nations who make up our worst deficits has grown by 113%. Our manufacturing sector has been so canibalized by the densely populated nations of the world that there is increasingly little left for others to buy from us. The manufacturing sector of our economy is on the brink of collapse. This may be the greatest existential threat that our country faces. We got a taste of it during the Covid pandemic when we found ourselves at the mercy of foreign suppliers for virtually everything, including the simplest of things like face masks and gowns and more complex items like respirators. How long could we sustain ourselves in a crisis like a war when our foreign suppliers could simply cut off our supplies of virtually every manufactured product? Even as I write this our auto plants are idled by a shortage of imported semiconductors.

As we did on the deficit end of the spectrum, we’ll next look at a list of the twenty nations who, in per capita terms (man-for-man) are our best trading partners.


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.


Biden “inherits” record trade deficit. Will he do anything about it?

February 8, 2021

The trade data released by the Commerce Department last week marked another sad milestone in America’s economic decline. The December balance of trade in manufactured goods set another new record -$87.3 billion – beating the previous record set only one month earlier. That’s an annualized deficit of $1.05 trillion and represents a loss of approximately fourteen million high-paying manufacturing jobs.

2020, the final year of Trump’s presidency, was by far the worst on record in terms of the trade deficit. In the title of this post, the word “inherits” is in quotation marks because while he now takes over that deficit from Trump, the truth is that Biden has played a key role in creating and exacerbating the deficit his entire adult life as a champion of globalist policies. He joined the U.S. senate in 1973. In 1975, America sadly experienced its final trade surplus, and has run an ever-growing deficit for the past forty-four years. He didn’t just “inherit” this problem. He played a key role in creating it, and it’s impossible to over-estimate the devastation done to our economy and to working Americans.

What will he do about it? Not a damn thing. His corporate benefactors, seeing more potential for profit growth in overseas markets than in the mature U.S. economy, have been paying him for decades to facilitate the transfer of America’s wealth and the export of American manufacturing jobs. He pays lip service to revitalizing American manufacturing, but that’s all it is.

Impeach Trump for inciting the Capitol building riot? Perhaps Biden should be impeached for his lifetime of work fomenting the unrest in this country that created the fertile ground for Trump’s rhetoric to take root.


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.