Moneymoney

Wed Mar 6, 2019, 05:30 PM

Good Lordy, What a Banner Year 2018 was for China, Other Countries, and Corporate America

Imports of goods rose by $202 billion to $2.56 trillion. The largest categories of imports:

Capital goods (computers, electrical equipment, etc. but not automotive): +8.2% to $693 billion

Industrial supplies and materials (including crude oil): +13% to $576 billion

Consumer goods, except automotive: +7.6% to $647 billion

Automotive vehicles and components: +4% to $372 billion

Food, feeds, and beverages: +7%, to $147 billion

A special word about “pharmaceutical preparations,” the legal kind: imports surged 21% to $134 billion. This is now the largest sub-category of Consumer Goods – because more and more of your prescription drugs are made in other countries. In 2016, pharma products blew past cellphones, currently the second largest category, stagnating at around $108 billion.

It also shows that Corporate America has routed its supply chain so deeply into China that by now 3.5 times as many goods are imported from China to the US than are exported from the US to China.

Corporate America is largely responsible for the trade deficit. No one forces companies to run their supply chains through China and around the world. Incentives in the US tax code and cheap labor overseas make it very profitable.

While the systems in China, Japan, and Germany coddle their local exporters, and impede imports, the US system does the opposite: It coddles US importers, and they range across the spectrum, from Walmart and GM to Apple and Pfizer. And these importers ruthlessly take advantage of what the system offers them.

https://wolfstreet.com/2019/03/06/good-lordy-what-a-banner-year-2018-was-for-china-other-countries-and-corporate-america/

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Reply Good Lordy, What a Banner Year 2018 was for China, Other Countries, and Corporate America (Original post)
uncledad Mar 6 OP
okletstalk Mar 6 #1
uncledad Mar 6 #2

Response to uncledad (Original post)

Wed Mar 6, 2019, 05:54 PM

1. Don't worry, I'm sure this is all part of Trump's master plan

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Response to okletstalk (Reply #1)

Wed Mar 6, 2019, 06:44 PM

2. If there's a plan...

Other than the current version, we'd be watching the sparrows fall from the sky in amazement.

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Moneymoney