Back when globalization by Corporate America was still a good thing, anxieties about the ballooning trade deficit in goods were medicated away with promises that exports of services – such as software, movies, and Wall Street efforts to financialize everything – would boom and balance out the trade. We’d buy cheap goods made in other countries, and they’d buy our expensive services, and it would all balance out. That was the rationale. Few economic rationales have failed more spectacularly.
The goods trade deficit in March worsened by 26% from March 2019, to a worst ever $92 billion, fired up by the worst ever imports that jumped by 9.7% from March 2019, to $234 billion, according to the Commerce Department today. Exports of goods ticked up 1.4% from March 2019, to $143 billion, roughly in the same range since 2014.Just Keeps Getting Worse: Services Trade Surplus, the American Dream Not-Come-True, Falls to 9-Year Low, Total Trade Deficit Explodes to Worst Ever | Wolf Street