Let’s talk trade deficits
fter the U.S. imposed previously announced tariffs (25 percent on steel and 10 percent on aluminum) on the European Union, Canada and Mexico last month, a number of you wrote to me and asked me to explain the bottom line when it comes to trade deficits.
I know that the rhetoric around trade has been tough to absorb, so here’s my attempt to provide some simple trade answers.
What is a trade deficit? A trade deficit occurs when a nation imports more than it exports. For instance, in 2017, the United States imported a record $2.9 trillion dollars’ worth of goods and services, while it exported $2.3 trillion, which amounted to a trade deficit of $566 billion dollars in goods and services, the highest trade deficit since 2008.
What does the U.S. import? There are billions of categories of what comes into the country, but it is mostly capital goods, like computers and telecom equipment; consumer goodies, like apparel, electronic devices, and automobiles; and crude oil.
What does the U.S. export? The U.S. economy is
to learn more. Encore Experiences in Harleysville, 312 Alumni Avenue, Harleysville, PA 19438, 215-256-6900.
GENERATIONS OF INDIAN VALLEY
Generations of IV is located at 259 N. Second Street in Souderton. It is a place of welcome for community members age 55+ in The Indian Valley and beyond with programs in wellness, fitness, nutrition, social services, recreation and travel. Weekday fitness offerings, lunch, cafe, activities, support, trips and more. For more information, call 215-723-5841 or visit www.generationsofiv. org. Generations’ Meals on Wheels program serves the Indian Valley and North Penn Areas. For more information Meals on Wheels: 215-723-8555.
HOMETOWNERS SENIORS OF WEST CONSHOHOCKEN
driven primarily by services, such as tourism, intellectual property, education and finance, which make up roughly one-third of exports. But the U.S. also exports aircraft, medical equipment, refined petroleum and agricultural commodities.
What’s the breakdown of goods vs. services? The U.S. deficit in goods stands at $810 billion, while there was a $244 billion surplus in services.
Why is the U.S. trade deficit increasing? During good economic times, companies and consumers spend more,especially on products
Hometowners meet on the second Thursday of every month at 11 a.m. on the first floor of the George Clay Firehouse. Information: 610-828-5740.
LOWER PROVIDENCE COMMUNITY CENTER SENIOR CITIZENS
Lower Providence Community Center Senior Citizens meet at 10 Parklane Drive, Eagleville every Wednesday from noon to 3 p.m. at the center. Refreshments and Bingo offered. Information: 610-831-5153.
MEALS ON WHEELS
Neighborhood Meals on Wheels volunteers delivers meals to residents of the Upper Merion School District. Deliveries are available for those unable to shop or prepare meals for themselves on a temporary or permanent basis. One hot and one cold meal are made overseas. Strange as it may seem, the Trump administration’s own tax policy may be contributing to the current trade deficit, because those cuts have led to more spending, more imports and less savings. Additionally, the strengthening U.S. economy has led to higher interest rates, which makes foreign investors more eager to place their money in the United States, another contributing factor to the deficit.
Are trade deficits bad? Although Commerce Secretary Wilbur Ross said that trade deficits “weaken our economy,” economists say
delivered Monday through Friday. We are a non-profit organization serving Upper Merion for over 40 years. We are also always in need of volunteers to pack or deliver meals on a weekly, monthly, or substitute basis. Volunteers are needed from 9:15-10:45 or 10:4512:15. You can contact us at 610-265-7051, email MealsonWheels.UM@gmail. com or at NeighborhoodMealsOnWheels.com.
MONTCO SAAC
Located at 536 George Street, Norristown, SAAC is open weekdays, 8 a.m. to 4 p.m. The center needs drivers for the Meals on Wheels program to assist homebound elderly. Volunteers can help out from once a month to once a week. THRIFT SHOP is open 10 a.m. to 1:30 p.m., Monday through Friday. DANCE CLASS is held every Monday that it is not the case that deficits mean the U.S. loses; nor do surpluses mean the U.S. wins. Imports have no effect on GDP, positive or negative and most economists say that trade boosts the overall economy by lowering prices and increasing productivity.
With which country does the U.S. have the biggest trade deficit? China is at the top of the list, according to the U.S. Census Bureau. In 2017, the value of Chinese goods imported to the U.S. exceeded American goods exports to China by roughly $375 billion. Over that same period, the United States ran a $38.5 billion surplus on services trade with China. That means overall, in terms of both goods and services, the U.S. trade deficit
at 10:30 a.m. EXERCISE WITH MEG for every Monday, and Wednesday, at 1 p.m. FEELING CRAFTY? Then join our crafty crew, at Montco SAAC at 12:15 p.m., when we will be making handmade soap. Cost is $2.00 to cover materials. Information: 610-2751960.
MONTCO SENIOR CONCERT CHOIR
Practices are every Wednesday at 10 a.m. at United Church of Christ (corners of West Marshall & Noble streets) in Norristown. This is a volunteer choral group who have been providing concerts for local organizations for over 40 years If interested, please contact our President, Bill Gildea at 610-631-9134, or our Director, Tedd Didden at 215-646-0294 for more details. Our only requirement is that you are 55 years of age, or older. Join with China was around $336 billion. The next largest is the European Union, with a total trade deficit of $101 billion.
With which country does the U.S. have the biggest trade surplus? The U.S. had a surplus with six of the 15 major trading partners that the Census Bureau tracked in 2017. The largest trade surplus in 2017 was with Hong Kong (nearly $35 billion). Following closely behind were Brazil ($28 billion), Singapore ($20 billion), and the United Kingdom ($14 billion). in the fun singing a large variety of upbeat music to appreciative audiences. All voice parts are welcome!
NATIONAL ASSOCIATION OF ACTIVE AND RETIRED FEDERAL EMPLOYEES (NARFE)
Chapter 372 holds its regularly scheduled luncheon meetings the first Wednesday of every month 1 p.m. at Facenda-Whitaker Lanes, 2912 Swede Road, East Norriton. Information: 610382-2752.
NORRISTOWN MEN’S RETIRED BOWLING LEAGUE
Bowling league for ages 55 and over is looking for bowlers. All are welcome regardless of bowling average. The league meets to bowl every Thursday from noon to 3 p.m. If interested, call Pete Crescitelli at 610630-6165.