Each spring, tornadoes and floods threaten the U.S. economy. Warren Buffett said natural disasters are a greater economic threat than terrorism. Is the Sage of Omaha right?
On average, prices didn't rise at all in April. Of course, that statistic hides a 1.5% increase in the price of used cars and trucks, and modest (.2-.4%) price increase in food, health care and clothing. That's because these were offset by a welcome 2.6% drop in gas prices, which had skyrocketed in February and March. Despite this short-term drop, the economy is still experiencing a mild (and even healthy) 2.3% increase in inflation over the last year.
In April, retail sales barely budged, rising just .1% over March's sales, to $408 billion. This was a 6.4% increase year-over-year, according to the most recent report from the Commerce Department. However, the Dow Jones Industrial Average was unfazed, even rising a bit. Why?
First, the good news. U.S. exports hit an all-time high in March, with $186.8 billion in American-made goods and services sold overseas. Despite the eurozone debt crisis, exports to that area also reached a record-high. Now, the not-so-good news. U.S. imports also set a record, reaching $238.6 billion last month, driven in part by high oil and gas prices. These imports created a $67.6 billion U.S. trade deficit, according to the Bureau of Economic Analysis (BEA)'s most recent report. America's dependence on foreign oil creates trade deficits with many oil-exporting countries. To find out the top ten, see Trade Deficit by Country.
Last week's employment report prompted Republican Presidential candidate Mitt Romney to state that "We should be seeing numbers in the 500,000 jobs created per month. This is way, way, way off from what should happen in a normal recovery." There's no doubt that 500,000 jobs a month would be great, but is this really true? How many jobs are created in a normal recovery? What do the facts say?
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