Even with all the supply chain issues, the Trade deficit is at an all time high. This obviously is not sustainable.
Americans’ spending on imported physical goods has gone through the roof, while exports are growing slowly, making the U.S. the world’s consumer of last resort.
Why it matters: High trade deficits let us buy more stuff during the pandemic. The flip side is the higher U.S. government debt that helped fund the surge in spending — much of it held by overseas investors.
Through the first 11 months of 2021, Americans imported $290 billion more in goods than in the same period of 2019.
Meanwhile, exports of goods rose slowly — up only $86 billion. Exports of services plunged as international travel collapsed.
The result: An overall trade deficit 48% higher than 2019, and on track for a record (by dollar amount) for 2021.
Axios AM
By Mike Allen ·Jan 26, 2022