Unsightly Evidence of U.S. Trade Gap Piles Up

KTLA ^ | July 9, 2006 | Deborah Schoch

[hedgetrimmer]

Of the more than 14 million containers that traveled back and forth through the ports last year, more than 7 million arrived full, moving goods into the United States, while only 2.4 million left full, taking U.S. exports abroad.

That doesn't seem like an indication of a healthy domestic economy to me.

[hedgetrimmer]

D'ya think that port down in Lazaro Cardenas will help?

[sinkspur]

That doesn't seem like an indication of a healthy domestic economy to me.

Why? We get all kinds of stuff that we want, and we send them a bunch of paper, which eventually ends up back here too.

[FreedomPoster]

>>That doesn't seem like an indication of a healthy domestic economy to me.


How many containers of COSCO crap destined for Wally World does it take to offset the sale of one 777 to a foreign carrier? Noting that said export doesn't involve any steel containers leaving the U.S.

[Jedi Master Pikachu]

if they stop taking in dollars, and the United States continues to import more than it exports, the economy could decline.

You generally shouldn't trust strangers (in this case, foreigners).

[sageb1]

"That doesn't seem like an indication of a healthy domestic economy to me."

Nor to me. I've always considered self-sufficiency integral to survival.

[Jedi Master Pikachu]

....And relying on them to take up more and more dollars only makes the United States more dependent on countries such as China, which could be a threat militarily in the future.

[donmeaker]

Really, it indicates that US exports are denser than imports, or that our exports are shipped in different kinds of containers.

For example, Grain is shipped in bulk. Software CDs aren't normally shipped in ISO containers either.

In the last 3 years, the US economy GREW by the economy of China. Consider that quietly.

[sinkspur]

if they stop taking in dollars, and the United States continues to import more than it exports, the economy could decline.

They have to take in dollars. Otherwise, we won't take their stuff.

[donmeaker]

Luxembourg has the highest per capita income in the world, but is pretty far from self sufficient.

Should we get rid of our 500 dollar an hour lawyers, so that we force them to grow and harvest bananas as 2 dollars an hour? How about to make shoes at 4 dollars an hour?

Lets not be silly.

[sinkspur]

....And relying on them to take up more and more dollars only makes the United States more dependent on countries such as China, which could be a threat militarily in the future.

Why would China attack its largest trading partner?

[technomage]

That doesn't seem like an indication of a healthy domestic economy to me.

You are correct, assuming that the MSM is actually giving us correct info (and when do they not do that when trying to run down our powerful economy).

[larrysh]

Sounds like THE solution to the homeless problem!

[theBuckwheat]

The trade deficit is a worthless and a meaningless number for one simple reason: the statistic is a relic of an era when the only goods that were imported or exported were goods that fit in a box or a barrel.

If a company sells a tangible item for export, when it ships it, the value must be reported on a Shippers's Export Declaration. This document is kept by the Bureau of the Census, as odd as that might sound.

If a company sells a license for something for export, they do not report the value to anyone, except as it is aggregated in the total sales for purposes of corporate taxes.

For example, when Boeing exports $1 million in airliner repair parts, the shipment must be declared on a SED.

When Oracle sells a $1 million license for its software, the government doesn't even know. There is no SED.

When Disney and Pixar ship the master prints of the new movie Cars to their distributor in Japan, they only must declare (on the SED) the value of the film in the cans. That is, a few thousand dollars. They do not have to declare the millions of dollars in expected revenue.

To the extent that the US exports goods that are not shipped on pallets and boxes, but instead are really software and media, or licenses and contracts, the Trade Balance statistic is a totally misleading number.

Counting shipping containers is impressive, but you can fill a lot of containers with $35 DVD players with the money that Pixar will earn from non-US sales of just one of its movies.

The "trade deficit" is so misleading as to be the source of dangerous policy decisions.

see:
http://www.export.gov/sed.html

[Marius3188]

I think it would be more accurate to say would the US rescue Taiwan if China decided to make it 'one' China with force.

[elkfersupper]

I have a trade gap with my grocer, barber and favorite gun shop.

Who cares, and why does it matter?

[Mike Darancette]

They can just glance across the street at the mountain of faded brown cargo containers blocking the Wilmington sky.

Sell them to Mexico for housing.

[Smartass]

I'll look for info on Lazaro Cardenas.
I'm very familiar with Wilmington, California. San Pedro is at the end of the Harbor Freeway (110), and Wilmington is just East. Wilmington is the sad, forgotten soul of the City of Los Angeles. Literally, a town of junkyards, container storage, recycling, and refineries. At times, the smell from a sewage treatment that blows East is overpowering in North Wilmington, and Carson. I really feel for the people that live there, they deserve much, much better. The City of Los Angeles takes in tens of millions on the shipping, yet Wilmington remains a virtual disgraceful dump. Los Angeles and Long Beach Harbors, plus Terminal Island are a constant 7/24 bee hive of trucks. The gangs and crime keep the local police pretty busy too.

If you'll notice at the lower right corner of the map, you'll find the U.S. Naval Station, Long Beach. That's what the honorable Bill Clinton gave away to the Chinese (Cosco) /sarc.

 

[coconutt2000]

Thank you. Pointing out that many of the yardsticks used to measure vital statistics these days are outmoded and outdated needs to be done more often.

I'm a proponent of the use of GNP as an indicator. And I'm sure there are many other economic formulas for accurately gauging economic health that are ignored by people whose agendas are political rather than patriotic.

[sinkspur]

Your post was very informative. Thanks for putting it up.