Exports are increasing, this is a very positive thing. Unfortunately imports are growing faster - as illustrated by our trade deficit that has DOUBLED since obama took office.
Doubling exports isn't doing us much good if we're tripling imports.
In order to even begin to understand net imports, the meaning of real dollar value and the contstantly increasing population must be understood.
In dollar terms, everything increases. Alone, an increase in the nominal dollar value of imports or net imports is meaningless because the price of everything increases. The only meaningful conversation is about the inflation adjusted real dollar values.
Every year, population increases. And with that increase, everything else increases. More absolute money is spent on imports simply because more people are purchasing imports. The only meaningfull conversation is about per capita consumption.
This should be pretty clear. It should not need explaining that inflation is about 2.5% a year. An import costing $1 this year will cost $1.025 next year. $1,000,000,000 in imports this year will be $1,025,000,000 next year. A $25,000,000 increase in imports means nothing. Population has increased by about 0.79% per year. $1,000,000,000 in imports will be $1,007,900,000 next year. A $7,900,000 increase means nothing. Combined, $1,000,000,000 this year will be $1,033,066,391 next year. A $33,066,391 increase means nothing.
It may be, when we look at real dollar per capita net imports or imports, we may find something. But we will never know unless we make the adjustment.
Here is an important point, when the economy goes into a recession, the net imports falls back. Increasing net imports means the economy is recovering. The economy begins to recover, people get jobs, people buy stuff, some of what they by are imports. This is how it has been since about 1978. Before 1978, the US economy was far less efficient, employed far fewer people, and enjoyed a far lower standard of living. The US was a net exporter, with net exports falling toward zero with every recession. Since 1978, the US economy has been more efficient, employed more people, and enjoyed a much better standard of living. With each recession, net imports fell towards zero.
The absolute level of imports and exports for the last quater of 2011 was
Exports $2.121 trillion
Imports $2.698 trillion
Net exports of -$577 billion was about 12% of the total amount of money that flowed in the import/export markets. It was about 20 to 25% of any one of them.
And the reality is, that is just pieces of paper called money. It's not a measure of the actual volume of stuff. It is a proxy measure of the volume of stuff. What really matters is the stuff, the physical goods. As they say, the guy with the most toys wins. And that -$577 billion is more stuff.
The level of net imports and exports have nothing to do with the state of the economy except that a healthier economy has more exports and more imports. A strong global dollar buys more stuff. That -$577 billion means a strong dollar just as well as more stuff.
So the question is, what do we want? Do we want economic recovery or low imports. Do we want a strong dollar or low imports. Do we want more stuff, or more pieces of paper that sort of measure the stuff? Do we want more people employed, more efficiency, and a higher standard of living? Or do we want low imports?
Yes, since the end of the recession, imports have increased and with them net imports. This is the history of net exports.
Notice how it collapsed into the recession. It stopped it's collapse when the recession ended. Net exports have yet to reach the pre-recession levels. The economy still has a ways to go. If anything, we should be thrilled to see net imports increasing.
Even so, we don't tell people what they can and cannot buy, what they can and cannot sell. What we can do, what we have always done, is convince others to buy our stuff. If we cannot sell our stuff, to bring that net export balance towards zero, then the number isn't the issue. Maybe we would be making stuff that people want to buy.
BTW, there was no doubling and tripling of imports and exports. Exports have increased by 17%. Imports are up 5%. The difference between exports and imports is up 78%. The levels of imports and exports are so huge that they swamp the difference. A small change in the imports and exports results in a large percentage change in the net exports.
When you say incorrect shit, like "Doubling exports isn't doing us much good if we're tripling imports", you just add more stupid to the world.
Learn some basic algebra skills. You can start by actually doing the math when you want to say "doubled" and "tripled". Being intelligent starts with actually attempting to be so. And you wont bother trying until you accept that fact that you are not. No one is born with language and math skills. People learn them. At least, try.
Otherwise, don't use numbers you don't understand.
