Trade Warriors Exclude a Third of U.S. Exports from “Trade Deficits”

Private services account for 69% of GDP, and 128.2 million jobs in June. In theBureau of Economic Analysis industry accounts,private service industries“consist of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreational, accommodation, a nd food services; and other services (except public administration).”Goods-producing industries, by contrast, “consist of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.” All of these goods-producing industries combined accounted for only 20.7 million jobs this June. That was fewer goods-producing jobs than in July 2000 (24.7 million) or August 1979 (25 million) or even May 1969 (22.9 million).  In other words,all long-term U.S. job growth has been in service occupations,not in manufacturing, mining, construction, and agriculture.The United States is predominantly aservice economy.   Many world-famous U.S. enterprises provide services all over the world – including entertainment, transportation, legal services, chain restaurants, advertising, accounting, medical tourism and college degrees.  In fact, rising U.S.service exports accounted fora third of total exports from January through May, and the U.S.surplus in services shrunk the total deficit by 31%.Yet when President Trump and his...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs