March 12, 2005

That Booming Economy

The falling dollar was supposed to close our trade gap by increasing the attractiveness of goods made in the US to both domestic and foreign consumers. That might have worked if we still made much here, or if people the world over didn't hate us. Whatever the reasons, the 'plan' to make do with a weak dollar isn't working:

The U.S. trade deficit widened in January to $58.27 billion, the second-highest monthly gap on record and the latest sign that the fall in the dollar has not yet started to shrink the chasm between imports and exports.

The trade figures, issued yesterday by the Commerce Department, showed that exports rose 0.4 percent in January, to $100.8 billion. But imports rose even faster -- 2.9 percent to reach $159.1 billion -- underscoring the difficulty of closing the gap. ...

Cheers to the Bush administration, we're one step closer to becoming a WalMart nation.

Posted by natasha at March 12, 2005 06:17 PM | Economy | Technorati links |
Comments

Since the government is preventing cattle exporters from testing for Mad Cow (the fear that it's there so we must ignore it is Very Bush), that will prevent exports from rising.

Posted by: Scorpio at March 13, 2005 10:58 AM