The WSJ informs:
Hopes for an American export boom are wilting under the weight of a strong dollar and global economic strains.
U.S. exports are on track to decline this year for the first time since the financial crisis, undermining a national push to boost shipments abroad. Through July, exports of goods and services were down 3.5% compared with the same period last year. New data released Tuesday by the Commerce Department showed that exports of U.S. goods sank a seasonally adjusted 3.2% in August to their lowest level in years.
The weak trade performance is restraining overall economic growth, a sign of how troubles in China and other major economies are dinging the U.S. economy.
“Foreign demand remains the weakest part of the economy,” said Jim O’Sullivan, chief U.S. economist at consulting firm High Frequency Economics.
But the dream of an export boom has faded.
As unemployment has declined, American consumers have reasserted their dominant role in driving economic growth. And a strong dollar and weakness overseas have helped turn international trade into a drain on overall economic growth in four of the past six quarters.
Why not realize that it´s overall spending growth fall that is restraining economic growth?
Consumer spending is almost 70% of aggregate spending. Therefore, the role of the consumer has always been “dominant”. As the chart indicates, NGDP growth has fallen together with the growth in consumer spending, implying the consumer has had a dominant role in driving economic growth down!
PS To understand the futility of RFQC, a must read is C+I+G+NX=Grossly Deceptive Partitioning