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One Of The Stupidest Things I've Ever Heard

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November 30, 2007 – Comments (4)

I was channel surfing on the radio on the drive home today and heard a woman talking about economic changes in the last decade or so. Then she got to recent changes and said that with exports starting to increase because of the low dollar, it was going to be a sad Christmas, because it is so much nicer when stuff you make stays home under your own Christmas tree.

I'm used to hearing economic stupidity in the popular media, but this ones takes the cake. We have had a huge negative balance of payments for a long time and the exports help reduce that. Plus, the exports are made by people here, that work and get paid for that work. The people who are working and getting paid for this work are sure going to have a better Christmas than they would if they were unemployed.

I've decided that after I achieve complete world domination, one of my edicts will be for manditory fundamental economic education. Everyone will take the class and will pass the final exam. Or else.

Chris - spare livers and kidneys are always useful if you catch my drift 

4 Comments – Post Your Own

#1) On November 30, 2007 at 2:08 AM, MakeItSeven (32.23) wrote:

Ha ha ... Maybe she was cynical by hinting that Americans can no longer afford their own products, only cheap imports.  Only citizens of richer countries can afford to buy cheap US products, discounted by the US dollars :).

But, where's the beef ?   Are we exporting hamburger flippers ?  I mean the US dollar has been sinking for a while now but the US manufacturing sector keeps shrinking, only the service sector is expanding.  If we are not making more products for exports then what are we exporting ?  %-|

More seriously this time, promise.   If you go here and click on the October report on economic outlook from Paul Kasriel (he received the 2006 Lawrence R. Klein Award for having the most accurate economic forecast among the Blue Chip survey participants for the years 2002 through 2005),   Look at chart 18 and 19.  Chart 18 shows that the growth in export is decent but not any higher than in the last 4 years.  The big difference which explains the shrinking trade deficit is in chart 19 which shows a steep drop in imports.

The last time US imports had such a steep drop was in 2001, just before getting into a recession.  There's no reason to doubt that imports will continue dropping in the next few months to a negative growth rate as in 2001.

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#2) On November 30, 2007 at 7:48 AM, wingedcreat0r (48.10) wrote:

Isn't this increase in exports just temporary anyways? Being that we are horrible at producing our own raw materials... wouldn't exports decrease in the long run due to importing material costs?

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#3) On November 30, 2007 at 10:51 PM, abitare (31.77) wrote:

I have heard dumber. Have you watched the Presidential debates? No wonder the dollar is falling, look who is on deck to take over. (Except Ron Paul, who is great, but ignored).

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#4) On December 11, 2007 at 11:56 AM, FundamentalGamma (58.08) wrote:

Can I be one of your deputies chk999!?

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