Economic Policy Institute takes apart Obama’s speech last night. Obama’s promised to double exports and create jobs but watch that left hand. EPI puts it best.
President Obama talked about doubling exports in the State of the Union Address last night as a strategy to create jobs. It’s a great sound bite, but woefully incomplete economics. While exports support American jobs, imports displace them; when imports grow faster than exports, our trade deficit expands and American jobs are lost. Between 2001 and 2007 (both business cycle peaks), we lost 3.4 million U.S. manufacturing jobs, and the fact that the trade deficit as a share of GDP rose by roughly one-third is a key reason why. Lately, when the president has talked about jobs and trade, he mentions the jobs associated with exports but ignores those lost due to growing imports. It’s like watching baseball, but only counting runs scored by the home team—lots of fun, but it won’t tell you anything about who is ahead. via EPI
Well put. So last year exports to China increased by 25 billion and in Obamaland the 75 million in imports are all but ignored. Our 300 million dollar deficit with china cost the U.S. 500,000 jobs last year. Wake up Obama, that pretty much kills your stimulus in of itself.