US trade deficit widened by 33% in 2010

[Turbineguy]

The US trade deficit ballooned in 2010 by the largest amount seen in a decade, Commerce Department figures have shown.

The trade deficit - the difference between imports and exports - hit $497.8bn (£311bn) last year, up 32.8% on the year before, the biggest annual percentage gain since 2000.

Imports from China hit record levels, totalling $364.9bn for the year.

For the month of December, the deficit widened by 5.9% to $40.6bn, after a rise in the price for imported oil.

http://www.bbc.co.uk/news/business-12431066

This is the natural result of longstanding self-destructive economic policies.

[Statistical]

1. The trade deficit represents less than 3% of the US economy.

[Bigmack]

2. At the risk of taking on someone...

who does stats (your screen name)...

Why is this not a disaster? If we buy stuff from overseas, isn't this an indication that we are making less stuff? How about the money?.... isn't it flowing from us to them?

Tell me more than just the 3% figure.

[Statistical]

3. The US economy is roughly $16.8 trillion.

The trade deficit represents less than 3% of GDP. Even if we sealed the borders and imported or exported nothing it wouldn't have a meaningful impact on US economy. We aren't as heavily levered to imports & exports as other countries. Also oil (something we simply can't produce more in any significant quantities) is more than half of the trade deficit.

It is something to watch but the doom & gloomers often have it wrong.

The belief that the US makes "nothing" is a common but false meme. The US has the largest industrial base in the world. We make more than any other country. Hell we almost make as much as China & Japan combined. We tend to not make cheap consumer products but we do make a lot. For example we are the largest exporters of aviation products. Not just jets but engines, replacement parts, servicing equipment, avionics, radios, etc.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_composition

We also are world leaders in semiconductors, power plant turbines, nuclear reactors, other electronics, heavy machinery, chemical, and telecom equipment.

The US is the 3rd largest exported in the world (behind Germany & China)
http://www.nationmaster.com/graph/eco_exp-economy-exports