http://economix.blogs.nytimes.com/2012/01/27/the-quiet-driver-of-economic-growth-exports/?ref=economy
This article is about the increasing importance of exports to the United States' economy. In recent times, foreign trade has been looked down upon due to the trade deficit. However, in the past year, exports have brought in over $2 trillion, or 14% of the GDP, which is the largest share they have held since 1929.
This suggests that the increase in economic growth that has been happening over the last few months may be at least partially a result of this increased exporting. Foreign buyers have been more willing to buy American products because the decline of the American dollar has made them less expensive. In fact, exports have been on the rise for most of the last 50 years. The strongest portions of this growth in exports is actually petroleum, metal, chemicals and agricultural products. It is the "old" economy which is making a comeback. Despite the fact that this growth may be a result of the decline of the dollar, it is still growth and therefore still beneficial to the economy.
2 comments:
According to supply and demand as prices go down, demand should go up so the decline of the dollar would not be bad in this situation. Also considering the decline of the euro against the dollar, a small decline is not really a concern.
As the article explains, we have more exports this year than in the past two decades. Our economic stance has not become this way within a year or even two or three; yet, it has been a process downward. Therefore, to me, it seems as though this article assumes we could be on a gradual path upward. I'd say let's continue this trend of exporting more and more goods even though its not the common trend of the United States..
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