http://www.theguardian.com/business/economics-blog/2014/dec/23/uk-current-account-deficit-osborne-no-plan
This article focuses on the growing trade deficit in the United Kingdom. The chancellor has put in a long term economic plan and it has not taken as much as he would like. Growth is relying on consumer spending and they have a high budget. At this time, the deficit takes up 6% of GDP because they rely to heavily on imported goods. Britain is no different than other countries with deficit problems but they do have a plan that is not working. Because the plan is failing, the country is more vulnerable. It is also concerning because the deficit accounts for foreign investments; which have not been doing well. This issue is alarming because I thought that the UK's economy was strong. I was not surprised that the exports have fallen because it has happened in the U.S. and other developed countries. I hope that the chancellor and the Treasury can find a solution that will fix all parts of this issue.
Friday, January 16, 2015
United States Balance of Trade- Trading Economics
http://www.tradingeconomics.com/united-states/balance-of-trade
This article explains how the trade deficit has differed of the last 65 years. It explains why it was so high or low and how to change it in the future. In 2012, the trade deficit was at an 11 month low; 39 billion dollars. After reading the other articles, I think that reducing the trade deficit is very important and that month to month goals are the way to accomplish the goal. That being said, this fact was a step in the right direction. This particular deficit was fueled by a lack of crude oil imports. Even though the U.S. imports many goods, decreasing crude oil imports could cause a major decrease. While decreasing imports is important; maintaining or growing exports is also a substantial part of the trade deficit. In November, exports fell by one percent and services also decreased. I think that this article gave concise and accurate information about a complex topic. If the U.S. accurately keeps track of the exports and imports, we will be able to reduce the trade deficit.
This article explains how the trade deficit has differed of the last 65 years. It explains why it was so high or low and how to change it in the future. In 2012, the trade deficit was at an 11 month low; 39 billion dollars. After reading the other articles, I think that reducing the trade deficit is very important and that month to month goals are the way to accomplish the goal. That being said, this fact was a step in the right direction. This particular deficit was fueled by a lack of crude oil imports. Even though the U.S. imports many goods, decreasing crude oil imports could cause a major decrease. While decreasing imports is important; maintaining or growing exports is also a substantial part of the trade deficit. In November, exports fell by one percent and services also decreased. I think that this article gave concise and accurate information about a complex topic. If the U.S. accurately keeps track of the exports and imports, we will be able to reduce the trade deficit.
Tuesday, December 16, 2014
Problems of a Current Account Deficit- Economics Help
http://www.economicshelp.org/macroeconomics/bop/probs-balance-payments-deficit/
This article explains the concerns and possibilities of account deficits. The trade deficit make up a large portion of the current account deficit. This means that imports and investment have a greater value than exports. This is sometimes concerning because it is not sustainable in the long term and can cause countries to pay back money with high interest. This situation seems similar to a problem that would cause unanticipated inflation in a country. These countries also rely on consumer spending which leaves them more vulnerable to unwanted changes. The issues are concerning but not as realistic for countries like the U.S. The U.S. attracts capital and that makes it harder to rely on foreign investment. This article helped me understand that developing countries are more affected by trade deficits. I also learned that in some cases the deficit could indicate a growing economy. One part of the article that I did not understand was about inward investment. I have not learned about it specifically and would have to do more research. The amount of possible reactions to the account deficit is a lot more than I previously expected and it is much more complex.
This article explains the concerns and possibilities of account deficits. The trade deficit make up a large portion of the current account deficit. This means that imports and investment have a greater value than exports. This is sometimes concerning because it is not sustainable in the long term and can cause countries to pay back money with high interest. This situation seems similar to a problem that would cause unanticipated inflation in a country. These countries also rely on consumer spending which leaves them more vulnerable to unwanted changes. The issues are concerning but not as realistic for countries like the U.S. The U.S. attracts capital and that makes it harder to rely on foreign investment. This article helped me understand that developing countries are more affected by trade deficits. I also learned that in some cases the deficit could indicate a growing economy. One part of the article that I did not understand was about inward investment. I have not learned about it specifically and would have to do more research. The amount of possible reactions to the account deficit is a lot more than I previously expected and it is much more complex.
Bureau of Economic Analysis- U.S. Department of Commerce
http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm
The Department of Commerce released the trade deficit report for the month of October. I was surprised that it took over a month to compile the report until I started reading. There were many other factors and statistics in the report that I didn't expect. The trade deficit in October was 43.4 billion dollars. That is two billion dollars down from September but an increase of 20.5 billion from that time last year. At first this number seemed huge but as I read on, I realized that the percentages make a difference. The exports increased 3% or 57.8 billion from last year which is good. This report ties directly to the Gross Domestic Product of the U.S. It is part of the formula and like most other countries; the imports are higher than the exports. I realized how the trade deficit affects GDP and why it is important to calculate. After reading the report, I was concerned that the U.S. is vulnerable to issues if something were to happen to the imports. We seem to be heavily reliant on imports which was a topic of concern. The report eased the concern and what we learned in class made me realize that all countries are reliant on imports more than exports.
The Department of Commerce released the trade deficit report for the month of October. I was surprised that it took over a month to compile the report until I started reading. There were many other factors and statistics in the report that I didn't expect. The trade deficit in October was 43.4 billion dollars. That is two billion dollars down from September but an increase of 20.5 billion from that time last year. At first this number seemed huge but as I read on, I realized that the percentages make a difference. The exports increased 3% or 57.8 billion from last year which is good. This report ties directly to the Gross Domestic Product of the U.S. It is part of the formula and like most other countries; the imports are higher than the exports. I realized how the trade deficit affects GDP and why it is important to calculate. After reading the report, I was concerned that the U.S. is vulnerable to issues if something were to happen to the imports. We seem to be heavily reliant on imports which was a topic of concern. The report eased the concern and what we learned in class made me realize that all countries are reliant on imports more than exports.
Sunday, November 23, 2014
Debt Fades as Election Issue- The Hill
http://thehill.com/policy/finance/219053-debt-fades-as-election-issue
This article was very interesting because it focused on the lack of focus on the debt ceiling. It was a nice change because the focus has always been on the raising of the ceiling. It also offered a different look at the Republican party. The party has been more critical of ObamaCare and spending which I also think is more important. The issues that the party is focusing on, are related to cutting spending and budgets but don't directly affect the debt ceiling. I think that ObamaCare is a more pressing issue because it affects the middle class and the debt ceiling only really affects the people who have substantial savings. I agree with the proposal of a 5 trillion dollar spending cut over the next 10 years because it will keep the government accountable for the money they have in the budget. I disagreed with Joni Ernst statement about transitioning teenagers to Social Security plans. I don't think that that would help spending or reducing the deficit. I also think that budget discussions will lead to a debate about the debt ceiling and government spending next year.
This article was very interesting because it focused on the lack of focus on the debt ceiling. It was a nice change because the focus has always been on the raising of the ceiling. It also offered a different look at the Republican party. The party has been more critical of ObamaCare and spending which I also think is more important. The issues that the party is focusing on, are related to cutting spending and budgets but don't directly affect the debt ceiling. I think that ObamaCare is a more pressing issue because it affects the middle class and the debt ceiling only really affects the people who have substantial savings. I agree with the proposal of a 5 trillion dollar spending cut over the next 10 years because it will keep the government accountable for the money they have in the budget. I disagreed with Joni Ernst statement about transitioning teenagers to Social Security plans. I don't think that that would help spending or reducing the deficit. I also think that budget discussions will lead to a debate about the debt ceiling and government spending next year.
Wednesday, November 19, 2014
Where's the debt ceiling now?- CNN
http://money.cnn.com/2014/02/11/news/economy/debt-ceiling-reset/
I think that this article is a bit shocking because our national debt is 17 trillion dollars. The opinions in the article were pretty unbiased which made the article easier to understand. It seemed pretty concerning that the ceiling has been raised five times since 2011. I think that the ceiling could affect personal savings and cause the economy to slow. I am a bit skeptical that the Treasury can monitor the funds and make sure the country doesn't exceed the limit. I think that the country can successfully run with a lot of debt but they need to stop raising it. However, it is concerning that the ceiling has raised approximately three trillion dollars in the last three years. The government and committees usually come up with good solutions to these issues. I hope that they can come up with a plan that allows the country to function with an OK amount of debt.
I think that this article is a bit shocking because our national debt is 17 trillion dollars. The opinions in the article were pretty unbiased which made the article easier to understand. It seemed pretty concerning that the ceiling has been raised five times since 2011. I think that the ceiling could affect personal savings and cause the economy to slow. I am a bit skeptical that the Treasury can monitor the funds and make sure the country doesn't exceed the limit. I think that the country can successfully run with a lot of debt but they need to stop raising it. However, it is concerning that the ceiling has raised approximately three trillion dollars in the last three years. The government and committees usually come up with good solutions to these issues. I hope that they can come up with a plan that allows the country to function with an OK amount of debt.
Friday, October 31, 2014
The Debt Ceiling Deal: Last Minutemen- The Economist
http://www.economist.com/news/united-states/21588089-congresss-just-time-agreement-ignores-countrys-long-term-problems-last-minutemen
This article sheds light on the costly mistakes and last minute deal making of the United States government. I like the article because it shows how the Senate had to bail out the government with a last minute decision but has to revisit the issue again. There was a few opinions in the article that I agreed with as well. I agreed that the sequester was the consequence of disagreements about the budget deal. I think that the sequester hurts our defense projects immensely because of the 10% budget cut. I liked the part of the article that talked about how the Treasury uses techniques like delaying payments to government workers to pay bills. This piece showed how miscommunication and lack of deal making, directly affects employees. These decisions not only affect the government but projects that are funded by them. Defense is a major department that has to take a hit. I believe that these decisions will hurt many parts of our country and economy. I didn't like how the article featured China's role in the argument. I also was annoyed by their blatant opinions in the article because it shadowed the actual content.
This article sheds light on the costly mistakes and last minute deal making of the United States government. I like the article because it shows how the Senate had to bail out the government with a last minute decision but has to revisit the issue again. There was a few opinions in the article that I agreed with as well. I agreed that the sequester was the consequence of disagreements about the budget deal. I think that the sequester hurts our defense projects immensely because of the 10% budget cut. I liked the part of the article that talked about how the Treasury uses techniques like delaying payments to government workers to pay bills. This piece showed how miscommunication and lack of deal making, directly affects employees. These decisions not only affect the government but projects that are funded by them. Defense is a major department that has to take a hit. I believe that these decisions will hurt many parts of our country and economy. I didn't like how the article featured China's role in the argument. I also was annoyed by their blatant opinions in the article because it shadowed the actual content.
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