Watching Exports Go Nowhere (June 2014) June 11, 2014Posted by geoff in News.
This one is fun, at least for me. I’ve been watching the President’s progress toward his promise to double exports for a couple of years now, and we’re finally getting close to the end. Yes, we’re 51 months into the 60-month timespan he allotted, and he’s only 35% of the way toward his goal. In fact, exports dropped $300 million this month, and we’ve never reached the modest “highs” of last October and November.
So next March we’ll finally see the end – the January export data will be published and the result will be official. But I think you can already see what’s going to happen. For the past two years our exports have increased by an average of 2.3%, which is about the rate of inflation. In those two years exports have risen by less than $9 billion. They should have risen by $57 billion.
So this schadenfreude of mine – is it because I wanted him to fail?
It’s more that I thought his original statement was opportunistic, irresponsible, and naive. Did he really think a couple of minor trade agreements would double exports? And once this linchpin of his economic recovery plan started failing you would imagine that he would take some action to put his goal on track. After all, if you don’t make your milestones, how do you expect to meet your ultimate goal?
But this critical milestone was forgotten immediately after reelection, and the economy was left to languish.
And languish it has.