Where We’re Importing and Exporting

A glance at two maps – top import and expert country for each state in 2016 – reveals some interesting observations:

  • On the export side, Canada is the leading destination from 33 states (including Indiana and 25 of the other 31 east of the Mississippi River)
  • Mexico (six states) and China (four states) were next on the list
  • Among the more intriguing partnerships: Nevada’s exports are going to Switzerland
  • On the import side, nine countries are represented with China (23 states) and Canada (14 states) leading the way
  • Indiana and Oregon are the two states in which the lead importer is Ireland (Happy St. Patrick’s Day, by the way!)
  • Of Indiana’s four neighbors, China is tops in Ohio, Kentucky and Illinois, while Mexico (think auto industry) is the top partner with Michigan
  • Hawaii stands alone with its top partners of Indonesia (imports) and Australia (exports)

According to the American Enterprise Institute:

Last year, American companies sold $2.2 trillion worth of goods and services to buyers in other countries, and American companies and consumers purchased $2.7 trillion worth of imports from trading partners all around the world. Seven states – Michigan, Louisiana, South Carolina, Tennessee, Kentucky, Washington and Texas – have their international trade represent more than 30% of their economic output.
Together, that volume of international trading activities represented 26% of the value of America’s $18.5 trillion in GDP in 2016. In terms of employment, more than 27 million American workers, about one in five, have jobs that are directly supported by trade with the rest of the world. Some states like California and Texas have more than two million jobs that are directly supported by international trade.

U.S. Not Tops in Global Technology Use

This info is a bit surprising, but according to a recent study, the U.S. trails countries like Sweden, Singapore and Switzerland in technology use. In order to make up the difference, I plan to spend the next two weekends watching hours upon hours of YouTube videos of house pets whose owners insist they are talking (they think they’re people). USA! USA! PR Daily offers:

You wouldn’t know it judging by the sea of smartphones and mobile tablets on public transportation every morning, but the United States is lagging (relatively speaking) in its use of computing and communications technology.

According to an annual study by the World Economic Forum, the U.S. finished fifth among 138 counties in technology use.

Sweden, Singapore, Finland, and Switzerland topped the U.S. in tech use. Canada ranked No. 8, and Great Britain was No. 15.

The rankings are based on 71 economic and social indicators.

A surprise: China and India each fell five places from 2009, ranking 36th and 48th, respectively.

Freedom Takes a Hit

The good news is that the United States ranks eighth out of 179 countries in the 2010 Index of Economic Freedom. The bad news, according to John Stossel (via Reason Magazine), is that the U.S. ranks behind Canada and that policies (both past and current) are threatening that freedom even more.

For the past 16 years, the index has ranked the world’s countries on the basis of their economic freedom—or lack thereof. Ten criteria are used: freedoms related to business, trade, fiscal matters, monetary matters, investment, finance, labor, government spending, property rights, and freedom from corruption.

The top 10 countries are: Hong Kong, Singapore, Australia, New Zealand, Ireland, Switzerland, Canada, the United States, Denmark, and Chile.

The bottom 10: Republic of Congo, Solomon Islands, Turkmenistan, Democratic Republic of Congo, Libya, Venezuela, Burma, Eritrea, Cuba, Zimbabwe, and North Korea.

The index demonstrates what we libertarians have long said: Economic freedom leads to prosperity. Also, the best places to live and fastest-growing economies are among the freest, and vice versa. A society will be materially well off to the extent its people have the liberty to acquire property, start businesses, and trade in a secure legal and political environment.

Bill Beach, director of the Heritage Foundation’s Center for Data Analysis, which compiles the index with The Wall Street Journal, says the index defines "economic freedom" to mean: "You can follow your dreams, express yourself, create a business, do whatever job you want. Government doesn’t run labor markets, or plan what business you can open, or over-regulate you."

We asked Beech about the U.S. ranking. "For first time in 16 years, the United States fell from the ‘totally free’ to ‘mostly free’ group. That’s a terrible development," he said. He fears that if this continues, productive people will leave the United States for freer pastures.

"The United States has been this magnet for three centuries. But today money and people can move quickly, and in less than a lifetime a great country can go by the wayside."

Why is the United States falling behind? "Our spending has been excessive. … We have the highest corporate tax rate in the world. (Government) takeovers of industries, subsidizing industries … these are the kinds of moves that happen in Third World countries. …"

Beach adds that the rule of law declined when the Obama administration declared some contracts to be null and void. For example, bondholders in the auto industry were forced to the back of the creditor line during bankruptcy. And there’s more regulation of business, such as the Dodd-Frank law for the financial industry and the new credit-card law. But how could the United States place behind Canada? Isn’t Canada practically a socialist country?

"Canada might do health care the wrong way," Beach said, "but by and large they do things the right way." Lately, Canada has lowered tax rates and reduced spending.

U.S. Ranks 7th on Quality of Life Index, France Takes the Crepe

The publication International Living just released its 30th annual Quality of Life Index, which attempts to answer the question, "Where is the best place to live?" Huffington Post writes:

Using what seems to be a semi-statistical reasoning (data is used, but so is personal experience), the countries have been ranked in 10 categories – Cost of Living, Culture and Leisure, Economy, Environment, Freedom, Health, Infrastructure, Safety and Risk, and Climate.

As usual, the rankings have provoked equal shock and happiness from different quarters – Brits seem exceptionally upset, although not surprised, that their ranking has dropped below that of the Czech Republic.

I’ll grant you, it does seem somewhat subjective based on the criteria. But the top 10 is as follows:

  1. France
  2. Australia
  3. Switzerland
  4. Germany
  5. New Zealand
  6. Luxembourg
  7. United States
  8. Belgium
  9. Canada
  10. Italy

So there you go. Opine away…

We’re No. 2 … in Economic Ranking

The World Economic Forum takes Geneva over Washington in its latest global competitiveness report. In other words, Switzerland tops the United States in the ranking of world economies. It is the first time out of the No. 1 spot for the U.S. since the rankings were revised in 2004.

Why the downgrade? The report cites banking system troubles, concerns about the "government’s ability to maintain distance from the private sector" and doubts about firms’ auditing and reporting standards.

The Swiss, who also dipped into recession and had to bail out their largest bank (UBS), were lauded for "capacity to innovate, sophisticated business culture, effective public services, excellent infrastructure and well-functioning goods markets."

In the banking category, Canada led the way. The U.S. was 108th (behind Tanzania) and the British 126th.

Public data and an executive opinion survey are used to compile the rankings. Behind the Swiss and the Americans are: Singapore, Sweden, Denmark, Finland, Germany, Japan, Canada and the Netherlands.

At the bottom were African countries Zimbabwe and Burundi. For Zimbabwe, the report cited "corruption, basic government inefficiency and the complete absence of property rights."

Swiss Bank Secrecy No Longer Tolerated by U.S.

Apparently, the United States government is putting the pressure on Swiss banks to reveal the identities of their American customers for tax purposes.

This reminds me: When I was a kid watching sitcoms in the ’80s and a character would mention Swiss bank accounts (likely Alex P. Keaton), I always imagined a bank made of Swiss cheese, where the tellers interacted with customers through the holes. In related news, I was not a bright child. And sadly, now an adult, the only thing I can ponder about this is whether or not the potent smell of such a workplace would warrant an OSHA violation. Oh to long for the carelessness of youth. Anyway…

MSNBC writes:

Federal authorities have filed a lawsuit against Swiss-based bank UBS AG seeking the identities of tens of thousands of U.S. customers.

The suit filed in Miami Thursday seeks to force the firm to turn over information on as many as 52,000 U.S. customers who hid their accounts from the U.S. government in violation of tax laws. According to the government’s lawsuit, the accounts in question held about $14.8 billion in assets in the past decade.

The company said it will fight in court to keep the names private, arguing Swiss bank secrecy laws shield those customers.

A federal judge will now decide whether the U.S. courts can force a bank to violate Swiss bank secrecy laws and provide the account information.

The move came as Switzerland desperately sought to reassure its citizens and international banking clients that it would safeguard a treasured tradition of confidential accounts after taking the unprecedented step of revealing over 250 tax cheats to U.S. authorities.

Hat tip to Chamber staffer Tim Brewer for the article.