– Economic news from elsewhere covered by Quincy Quarry News.
The $1.4 Trillion United State Trade Surplus that President Trump is not talking about.
The United State has an annual surplus of $20 billion with China and $1.4 trillion with the rest of the world, according to research by Deutsche Bank AG.
Granted, these projections are not based on the tradition way of calculating trade balances and which find that the United State had an annual deficit of more than $330 billion with China and about $550 billion with the world in total last year.
Rather, Deutsche Bank’s data are “aggregate sales surplus” figures which measures both direct trade and the sales of multinational companies.
Just looking at the goods and services trade deficit is misleading and does not capture the true size of United States business interests, according to Deutsche Bank economists.
As such, Deutsche Bank looks to a wider range of trade data, including foreign sales by United States companies operating in foreign countries and foreign firms operating in the United States.
“U.S. companies have sold more to the rest of the world than other countries have sold to the U.S. in the past ten years,” writes chief China economist Zhang Zhiwei in the report.
Granted, the foreign operations of U. S. companies do not provide wages to its domestic employees, other than enhanced income to those relatively few receiving stock options or other sorts of company-wide performance-based bonuses, also considering Deutsche Bank’s approach to looking at the data does offers both a richer and more nuanced view of things.
For example, helping to better understanding how domestic policies encourage many U. S. companies to move at least some of their operations offshore.