EXPORTS

We are still running a trade deficit and many tend to look at the supposed lack of U.S. exports. But exports are NOT our problem. They have actually risen over the last 30 years (minor glitch in the mid 80's). Many articles focus solely on the service sector- where we undoubtedly have done fairly well- increasing at a nominal rate of 10.5% between 1985 and 1995. But the same pundits dismiss manufacturing exports by saying that we have lost ground considerably to second and third world countries. Wrong! During the same time period, these exports increased at 10.5% clip.- led by computer hardware and all our other technological advances. So why the still high trade deficit? Because as a country, we are still mass importers of all sorts of goods. Sure, some of U.S. jobs/industries are under severe pressure from cheaper labor overseas- making sneakers, for example, is far cheaper in China or Korea. But overall, it's the U.S. productivity that stands out as the best. The U.S. keeps the world going