Economics

U.S. Hits Largest Trade Deficit in 10 Years

Published

5 years ago

March 21, 2019

Rev. Curtis O. Robinson, Sr.

Rev. Curtis O. Robinson, Sr.

Economists have recently started to talk about the U.S. trade deficit being at a decade high of $796 billion dollars. According to Wikipedia, the balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation’s exports and imports over a certain period. In short, there is either a plus or a minus, and the U.S. has historically suffered from a deficit platform.

Not all countries suffer from deficit economic constructs. Nigeria and Russia have a trade surplus. When it comes to income, the U.S. outpaces both countries, but we have a deficit that is approaching an area where recessions happen. Right before the Great Recession of 2007, the U.S. trade deficit was at a staggering -$803 billion. Then, under the Obama administration in 2009, there was a precipitous drop in the trade deficit to -$504 billion.

What we hear very often from the current POTUS is that this is the best economy that ever was. It is true that unemployment is at its lowest in recent history. At 4.0 percent, unemployment is lower now, than it was in 2007, when it stood at 4.7 percent. However, numbers always tell a tale that finds truth, which is a leading indicator about the health of America’s economy. And despite the apparent robustness of the current economy, history tends to repeat itself. Business moves in cycles; up and down, all day, every day. As consumers, we need to pay attention to these trends.

Most economists suggest that the recent trade tariffs are leading to more Americans having to foot the bill. We are very dependent upon China for trade opportunities, however, this current administration does not seem to understand that change needs to be scalable, and not sudden. We must know that China’s once red-hot economy is starting to cool, and has gradually come down since 2014. We are celebrating a 10-year bull market, and I’m sorry to say that all parties come to an end.

Finally, the writer of Proverbs says, “Go to the ant, you sluggard; consider her ways and be wise! Which, having no chief, overseer, or ruler, provides her food in the summer and gathers her supplies in the harvest.” Get while the getting’s good, because we never know, do we?”

Rev. Curtis O. Robinson, Sr.

Posts by Rev. Curtis O. Robinson, Sr.

Related Topics:Donald Trump God on Wall Street Rev. Curtis Robinson trade deficit

Up Next

Dutchess Legislature Approves Term Limits

Don't Miss

Algerian President Bows To Thousands Demanding His Resignation

Rev. Curtis O. Robinson, Sr.

Click to comment

Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

4 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”