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Checking In On Trade

Merra Lee Moffit is a professional financial planner and wealth strategist with the Good Life Financial Group who provides business planning, retirement planning for individuals and business owners, education planning for college, estate planning, help with managing taxes and savings, and more in the Reading, Wyomissing, Lancaster, Exeter and Sinking Springs areas.

The U.S. has run a trade deficit (importing more goods and services from 
other countries than it exports) since the mid-1970s, which acts as a drag on 
overall gross domestic product (GDP) growth [Figure 1]. Although the trade 
deficit narrows during recessions, when imports typically fall faster than exports,
the trade gap has increased over time, and currently stands at around 3.0% of
 GDP. Along with the massive budget deficit, the trade deficit is one of the major
 economic challenges facing the U.S. and has fostered the oft-repeated conventional 
wisdom that “we don’t make anything in the U.S. anymore.” What’s missing from
 this assessment, however, is the role of the U.S. as a net exporter of services and
 the increasing value of “good old American know-how.” Here we focus on the 
details of what we import and export, and the impacts on the U.S. economy.

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Posted in Weekly Economic Commentary
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