Exports have buffered our economy during this recession somewhat. But did you know that they have only increased by about 2.9% annualized per year over the past 50 years? Imports increased by an annualized average rate of about 2.8% per year over the same 50 year period. That is not much different than our overall economic growth rates.
The dollars exported $1.8 trillion versus imported $2.2 trillion on the U.S.'s $14 trillion dollar (2008) economy (GDP) are big but as a percentage of GDP maybe not so bad. Take a look at it this way:
In 1958, exports were 3% of GDP and imports were 4% - or a 1% negative contribution to GDP (in effect, subtracting from GDP's total percentage growth by one perecent).
In 2008, exports were 13% of GDP and imports were 16% of GDP – or a 3% negative and, therefore, reduction to GDP.
A $400 billion deficit is large but 3% of GDP appears to be manageable in our economy.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.