While America's nation-destroying trade deficit amounts to a black eye for the modern neoclassical school of economics, it has raised calls by non-economists to "level the playing field" in the form of fair trade. As one astute commenter pointed out, the term Fair Trade is generally used in the context of ensuring equitable treatment of workers, along with necessary legal reform in developing countries. I on the other hand am using the term as one might find it proposed in currency reform legislation (i.e. Currency Reform for Fair Trade Act).
The U.S. November 2014 monthly trade deficit declined -7.7% from last month and now stands at -$39 billion. America still runs a surplus in services, now at $19.3 billion, but the goods deficit is still massive and this month was -$58.3 billion. This month's trade deficit reduction is due to less crude oil imports and lower oil prices.
The December ISM Manufacturing Survey shows manufacturing is still expanding, abet at a slower pace than November. PMI dopped by -3.2 percentage points to 55.5%. New orders caused the overall decline and by themselves slid down -8.7 percentage points to go below the 60's level.
Happy New Year From The Economic Populist! Another day, another year. We hope 2015 is finally the time of the middle class. Will finally wages increase, will jobs and careers recover? So far that has not been the case, although 2014 is when hope for U.S. workers glimmered on the horizon. We've survived the three biggest days to die in the United States, Christmas, Boxing day and New Years. Now an onslaught of Republicans will take over Congress, so we can be assured any legislation to help the U.S. middle class will not be enacted.
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