The trade deficit has become a regular feature of the U.S. economy, as the cost of goods the country imports regularly exceeds the value of goods exported internationally. Recently, however, the trade deficit has been skyrocketing with no end in sight. The deficit “mushroomed” to a record high in November.
Reuters reported that the trade deficit grew in November by 17.5 percent to $97.8 billion for the month. The deficit ran at $83.2 billion in October. The November mark eclipsed the previous record for a monthly deficit of $97 billion set two months before September.
As retailers moved to stock shelves for the Christmas shopping season, imports rose by 4.7 percent. The value of imported consumer goods went up by $2.9 billion to a total for the month of $67 billion.
The value of goods exported by American producers fell for the month by 2.1 percent. The value of exported capital goods fell by $1.3 billion, and industrial supplies exports were off by $1.4 billion.
Many economists say that the trade deficit will remain as long as the COVID pandemic goes on, with some stating that the omicron variant spurred the November record. An economist with Oxford Economical, Nancy Vanden Houten, said that Omicron might “further ignite” imports if the virus restricts domestic service activity.
Market Watch reported that the country is set to surpass trade deficit records set in 2006 to set new all-time high deficits. Economists note the upcoming adverse effects of GDP growth that will result from the record trade deficits.
Economist Peter Schiff said on Twitter Wednesday that the “horrific data” regarding the record deficit shows that the American economy is a “complete disaster” and has “never been weaker.”
The same day that the Department of Commerce released the horrific November trade figures, Joe Biden boasted that he held the most substantial first-year economic record of “any president in the last 50 years.”
He added, apparently with a straight face, “Let’s keep the progress going.”