US Trade Deficit Exploded in 2021: The Price of 30 Years of Rampant Globalization | Wolf Street

The US trade deficit in goods and services in 2021 exploded by 27% from 2020, to $859 billion, according to data by the Commerce Department. This is the result of 30 years of rampant and government-policy-encouraged globalization by Corporate America, from Walmart, Amazon, and the vast auto industry to the pharmaceutical industry.

The trade deficit is a negative for GDP, and a negative for the overall economy in America, and it contributes substantially to the current supply-chain chaos. But US trade deficits are a huge positive for China, Germany, Vietnam, Mexico, and many other countries that we’ll get to in a moment. The driver behind the trade deficit is Corporate America.

US Trade Deficit Exploded in 2021: The Price of 30 Years of Rampant Globalization | Wolf Street