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rick-santorum-presidential-campaign

U.S. Republican presidential candidate and former U.S. Senator Rick Santorum is accompanied by his wife Karen (L) and his daughter Elizabeth (R) as he addresses supporters at his Michigan primary night rally in Grand Rapids, Michigan, February 28, 2012. (Photo: REUTERS/John Gress)

Rick Santorum, the second place finisher in the 2012 nomination, will announce his plans to run for president on May 27 in his hometown of Butler, Pennsylvania. The former senator made the announcement while speaking to Greta Van Susteren during an appearance “On The Record” Wednesday.

Santorum ran an underdog, come-from-behind campaign against former Massachusetts Gov. Mitt Romney in 2012, effectively painting himself as the conservative alternative to a moderate Northeastern liberal. In truth, he was shafted when the Iowa Republican Party failed to call the contest correctly on Election Day, blunting the very-much needed momentum that comes from winning the first-in-the-nation caucus.

However, competition will be much stiffer this cycle, as Santorum joins a growing GOP field that already includes Sens. Ted Cruz, Rand Paul, Marco Rubio, renowned neurosurgeon Dr. Ben Carson, and former Arkansas Gov. Mike Huckabee. Historically, finishing second in the Republican primary for president puts a candidate in line to hold frontrunner status the following cycle. But this is not the historical Republican Party, and Santorum has already lost a significant donor in the form of a wealthy Arkansas family, who jumped ship for Huckabee.

Jim Bob and Michelle Duggar, the parents of the reality TV clan from “19 Kids and Counting,” endorsed Huckabee for president after supporting Santorum financially and vocally in the last presidential election.

Santorum acknowledged his underdog status again this cycle, saying “we are quite comfortable there.” He said the campaign will emphasize “Blue Collar Conservatism,” the philosophy that also serves as the title of his book. It promotes the rebuilding of the American manufacturing sector, which has all but been dismantled over the last six years. He said we need to make the sector and the nation more competitive on the global scale through tax reform, but also focus on solutions to rebuild the most important institution in America — the family.

Rick Santorum, the second place finisher in


michael-brelo-trial

Cleveland Police Officer Michael Brelo sits next to his attorneys on April 28, 2015. (Photo: AP)

For those who love Cleveland — and there are so many of us who do — the rampant speculation of what comes next is beginning to take its toll.

We are in a constant state of limbo, waiting for so many things.

We are waiting for the verdict in the trial of police Officer Michael Brelo, who is charged with two counts of voluntary manslaughter in the Nov. 29, 2012, deaths of Timothy Russell, 43, and Malissa Williams, 30.

That was the night when 62 police cars chased these two unarmed people across town. Their lives ended in a barrage of 137 bullets fired by 13 officers. At the end of the high-speed chase, Brelo stood on the hood of their car, which was trapped between two police cars, and fired 15 rounds into them.

The nonjury trial has ended. Now we wait for the judge’s verdict and the public’s response.

We are also waiting for the city of Cleveland and the Department of Justice to finish negotiating the consent decree ordered last December and designed to rein in a long pattern of excessive force by police.

We are waiting to find out whether Cleveland police Officer Timothy Loehmann will be indicted for killing 12-year-old Tamir Rice last November.

We are waiting for the Cleveland police union leadership to stop making excuses for the worst of its members and to acknowledge publicly the racism in its ranks, which many members have been willing to talk about only off the record.

And, perhaps most urgently, we are waiting to see whether Cleveland can live up to our recent hype as a city in the throes of rebirth.

Even the city’s bravest faces — politicians, civic and religious leaders, community activists — mask souls cloaked in uncertainty.

We simply don’t know what happens next.

We are aware of the inevitable comparisons to the roiling turmoil in Baltimore and in Ferguson, Missouri.

We are also aware of the many missteps by a city administration too often tone-deaf to the needs of its residents. In March, the mayor apologized for language in a legal brief that cast Rice as responsible for his own death. Late last month, there was the brief and ridiculous Twitter campaign launched by the director of the Cleveland Community Relations Board, Blaine Griffin.

One of his tweets: “Have heart! Don’t hide in the shadows! Should #ourcle be burned down? Speak up.”

Followed by this: “Should Cleveland be burned down like #bmore #ferguson #hough #central?”

Outrage was swift. Both the tweets and the Twitter account disappeared, but not soon enough to spare us from a robust round of national ridicule. Last we checked, Baltimore, Ferguson and the Cleveland neighborhoods of Hough and Central are still standing. But thanks for the suggestion, said no sane person anywhere.

Now, as we wait for the Brelo verdict, city officials are reaching out to parents and community leaders. Cleveland Metropolitan School District CEO Eric S. Gordon sent out a tag-team letter with Mayor Frank Jackson to parents and caregivers.

On one side, Gordon tried to assure everyone that crucial conversations designed to protect children are taking place in Cleveland’s classrooms.

“An essential part of our social and emotional learning curriculum … is the lessons we provide to help students confront their feelings rather than to act out in anger,” Gordon wrote.
His list includes:

Good manners.

Understanding and respect for others.

Open expression of one’s feelings.

Sound decision-making.

Self-control and the ability to calm down when angry.

One can easily imagine parents reading that list of skills and wondering whether it’s also been introduced to members of Cleveland’s police department.

On the opposite side of Gordon’s letter, Jackson wrote that the city is “focused on how best to create a sense of safety, trust and confidence in our community, while empowering our police to enforce the law and maintain order.”

Pastors in Cleveland are vowing to open their churches in the hours after the Brelo verdict. Some have promised to be on the streets that day.

“To accommodate any person who wants to talk, any person that wants to have dialogue,” the Rev. Theresa Sutton told WKSU-FM, “we’ll have stations set up there so that you can write your requests. I’d do anything that you need to do to keep you from doing what is wrong. What we want people to do today is the right thing, and the right thing is peace, a nonviolent situation.”

This is the Cleveland I know. We are a city anchored in good intentions but churning with uncertainty. If enough of us — only if enough of us — step up, we could really be headed in the right direction, the one that helps us outrun a legacy of decline.

The question isn’t whether Cleveland is the next Ferguson or Baltimore.

What we’re about to find out is whether Cleveland is ready to be Cleveland.

For those who love Cleveland -- and

jobs-fair-weekly-jobs-report

An unemployed American speaks to a recruiter at a jobs fair. (Photo: Mark Ralston AFP/Getty)

The U.S. economy added far fewer jobs than the 200,000 economists had forecast in the month of April, according to the ADP National Employment Report.

“April job gains came in under 200,000 for the second straight month,” said Carlos Rodriguez, president and chief executive officer of ADP. “Companies with 500 or more employees had the slowest growth.”

Payrolls for businesses with 49 or fewer employees increased by 94,000 jobs in April, down from 105,000 the month prior. Employment among companies with 50-499 employees actually increased by 70,000 jobs, up from the 64,000 in March. Employment gains at large companies — or, those with 500 or more employees — fell slightly from March, adding just 5,000 jobs in April, down from 6,000.

“Fallout from the collapse of oil prices and the surging value of the dollar are weighing on job creation,” Mark Zandi, chief economist of Moody’s Analytics said. “Employment in the energy sector and manufacturing is declining. However, this should prove temporary and job growth will reaccelerate this summer.”

However, despite Mr. Zandi’s optimism, the government overestimated in their initial 1Q gross domestic product (GDP) report. In reality, according to a Commerce Department report released Tuesday, the U.S. trade deficit ballooned, indicating the economy did not even grow by the abysmal 0.2 percent initially reported. Instead, the new data suggest the economy contracted in the 1Q and more recent economic data has not pointed to a rebound.

The ADP report found troubling news for wage growth, as the sectors of the economy that provide higher-paying jobs continue to show lackluster performance. Manufacturing shed 10,000 jobs in April after losing 3,000 the month prior, while goods-producing employment declined by 1,000 jobs in April, down from 3,000 jobs gained in March.

The U.S. economy added far fewer jobs


ron-de-santis

U.S. Rep. Ron DeSantis, R-Florida, currently holds the House seat in the 6th Congressional District in the northeastern part of the state near Jacksonville.

PONTE VEDRA BEACH, FL — Rep. Ron DeSantis, R-Florida, announced Wednesday that he will run in the open Florida Senate race to replace Sen. Marco Rubio, who is running for President. Rep. DeSantis, a 36-year-old Iraq War veteran and founding member of the conservative House Freedom Caucus, currently holds the House seat in the 6th Congressional District in the northeastern part of the state near Jacksonville.

“America needs a new generation of leaders to address the big issues facing the country: alleviating the middle class squeeze and promoting economic opportunity, confronting the significant national security challenges threatening the safety of our people, and reforming the culture of Washington, DC,” said Rep. DeSantis. “As a candidate for Senate, I look forward to offering reforms based on limited government principles that will make our country stronger and more prosperous. I see a bright future for Florida and for America and my campaign will be about the ideas and principles that will help us achieve a more perfect union.”

DeSantis also launched a new website, www.DeSantis2016.com to get a jump on others mulling a run, where Floridians can go to learn more about his candidacy. But, while it remains unclear how many primary opponents DeSantis will ultimately have, conservative groups have either endorsed already or expressed interest in his candidacy before he even officially announced.

“We’re proud to support Congressman Ron DeSantis for the Senate in Florida,” Senate Conservatives Fund President Ken Cuccinelli told PPD in an email. “He’s a strong conservative, he has grassroots support, and he can win. If he is elected, he will stand up to the big spenders in both parties and fight to repeal Obamacare, balance the budget, and defend the Constitution.”

PPD reached out to the Club For Growth, who has assigned DeSantis a lifetime rating of 95 percent. The Club had previously expressed support for a DeSantis run, and also will support his candidacy now that it is officially underway.

“The Club for Growth PAC strongly endorses Ron DeSantis for U.S. Senate,” said Club for Growth President David McIntosh.” “The Club’s PAC endorsed Ron when he first ran for the House in 2012, and he has exceeded our expectations as a pro-growth lawmaker. He’s fought for the repeal of Obamacare and worked hard to stop Washington’s out-of-control spending. Ron DeSantis has been a courageous voice for economic conservatism in the House, and he’s the best choice to carry on the great work that Senator Marco Rubio has already done in representing Florida.”

If Republicans hope to keep control of the U.S. Senate in 2016, they can ill-afford to lose an open seat in a battleground state that has been trending Republican. According to PPD’s senior political analyst Richard D. Baris, the editor of the number one election projection model on the Internet, this is good news for the GOP.

“Rep. DeSantis has the potential to put together both wings of the party and already enjoys decent name recognition in an important region of the state,” Baris said. “If Republicans want to hold this seat, then they will have to drive up turnout and expand margins in districts such as the one Mr. DeSantis represents. He is a logical and principled choice, which should please all elements in the Republican Party.”

Rubio, who had promised he would not seek both reelection to the U.S. Senate and the White House, was also the conservative choice against then-Republican Charlie Crist, the former Florida governor turned-independent-turned-Democrat. Rubio went on to destroy Crist in the Republican primary, but Crist broke his promise and ran against Rubio as an independent. Sen. Rubio prevailed in the three-way race by winning all demographic groups save for black voters.

Senate Conservatives are already moving to sure up support across the various wings of the Republican Party, which could serve to discourage others from jumping in to what could turn into a costly primary.

“We hope conservatives in Florida and across the country will quickly unite behind DeSantis because we believe he gives us the best chance in this race to elect a principled leader who will fight for our values,” Cuccinelli said. “We will immediately begin raising money for the DeSantis campaign and plan to do everything we can to help him get his conservative message out and win this important race.”

The Florida Senate race is rated Leans Republican on PPD’s 2016 Senate Election Projection Model, though the GOP currently enjoys a mere 51 percent chance of victory.

Rep. Ron DeSantis, R-Florida, a principled


ISIS infographic

What You Need To Know About The Islamic State. (Courtesy of: Infographic World)

An online message from a self-described American-born jihadist said ISIS has 71 members of “trained soldiers” in 15 states awaiting orders to attack targets. A “message to the crusaders,” which was posted on a file sharing site by alleged ISIS terrorist Abu Ibrahim Al Ameriki, specifically named 5 target states and reiterated the group’s responsibility for the Sunday attack in Texas.

ISIS officially claimed responsibility for the Texas attack on a Muhammed art exhibit through their Al Bayan radio station Tuesday, calling the men “two soldiers of the caliphate.” Elton Simpson and Nadir Soofi, two Phoenix roommates, drove 1,100 miles from their apartment to carry out the failed attack. Simpson, 31, was an American Muslim convert who appears to have become radicalized over the last decade and Soofi, 34, a Pakistani-American, grew up in a Muslim family in Texas but studied Islamic theology in Islamabad.

In the latest message — viewable below– which is titled “A New Era,” California, Virginia, Maryland, Illinois and Michigan, all were named specifically. FBI director James Comey recently confirmed that the Bureau has open investigations into ISIS-related activity in 49 states.

“We are focused keenly on who would be looking to travel to join this band of murderers who will have come back from Iraq and Syria and to the United States,” Comey said in a speech to law enforcement officers in Mississippi. “We have opened cases all over the place focused on this threat, so it is not … a Washington thing – it is something we focus on throughout the FBI.”

And here’s the full message:

An online message from a self-described American-born


danish-pm-helle-thorning-schmidt

Danish Prime Minister Helle Thorning-Schmidt, a Social Democrat, defends a deal with Goldman Sachs that tore her cabinet apart. JONATHAN NACKSTRAND/AFP/Getty Images

Okay, I’ll admit right away that the title of this column is an exaggeration. But if you’re a public policy wonk and you worry about the rising level of government dependency and the erosion of self reliance, then you’ll understand why the chart below, which was presented earlier today at the Copenhagen conference of the Free Market Road Show, is so disturbing.

It was part of a presentation by Anders Krab-Johansen, the CEO and Editor-in-Chief of Børsen, which is the leading business newspaper in Denmark. It shows his nation’s dependency ratio, and it reveals that the number of people getting money from the government has more than doubled while the number of people in the economy’s productive sector is stagnant.

denmark-dependency

It’s very hard to be optimistic about Denmark given the trend line (and, please, no complaints about Mr. Krab-Johansen writing “of” instead of “off” since his English proficiency is 99 percent, which is far above my 0.0 percent Danish proficiency).

No wonder my Danish friend, Mads Lundby Hansen of the Center for Politiske Studier (CEPOS), put together the “party boat” to show that far too many of his countrymen are living off the labor of an ever-shrinking number of producers in the private sector.

It seems that “Lazy Robert” has lots of company.

You won’t be surprised to learn that a massive level of dependency necessarily means an onerous burden of government spending.

In his presentation, Mr. Krab-Johansen shared this chart looking at consumption spending by governments in the developed world.

denmark-public-consumption

For further elaboration, there are different types of government spending,

Spending on core public goods, such as provision of the rule of law, is associated with good economic performance.

Other types of government spending, such as outlays for physical capital and human capital, have a mixed record. Some of the spending on things like roads and education is productive, but some of it is wasteful and counterproductive.

The bulk of government spending, however, is for transfers and consumption, andthose outlays are associated with weaker economic performance.

The bottom line is that it’s a very bad sign for Denmark to have the developed world’s second-highest burden of public consumption outlays.

And if there’s an excessive burden of government spending, you won’t be surprised to learn that the tax burden is onerous.

I’ve previously joked that the tax system is so onerous that birthers should accuse Obama of being born in Denmark.

So it’s no surprise that business entrepreneurs identified tax-related issues as being two of their three biggest challenges.

denmark-concerns

It’s also worth noting that bureaucracy and regulation also are listed as problems.

P.S. This set of cartoons is the American version of Denmark’s party boat.

P.P.S. If anyone cares, my speech at the Copenhagen conference focused on the importance of policies that enable labor, capital, and entrepreneurship to generate economic growth.

P.P.P.S. I don’t want to leave readers with a totally grim perspective on Denmark. Yes, the fiscal burden is terrible, but the country actually is very free market in other areas. And the government is even taking some modest steps to reduce dependency, so policy makers realize there’s a problem.

[mybooktable book=”global-tax-revolution-the-rise-of-tax-competition-and-the-battle-to-defend-it” display=”summary” buybutton_shadowbox=”true”]

The number of people dependent on the

 
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Hillary Clinton in LeClaire, Iowa on April 15, 2015. (Photo: Charlie Neibergall / AP)

“This vast right-wing conspiracy,” Hillary Clinton said, “has been conspiring against my husband since the day he announced.” That was the “feminist” first lady’s response when her husband was accused of having sex with a 21-year-old.

Bill was more lawyerly. He said things like, “It depends upon what the meaning of the word ‘is’ is.”

The Wall Street Journal’s Kim Strassel suggests that the Clintons must have a Scandal Manual: “The standard operating procedure never changes.”

Forty years ago, Hillary would have us believe that she wasn’t just the wife of a man running for Arkansas governor — she was a lucky or brilliant investor who in less than three weeks doubled her money. No, tripled! No, wait — quadrupled … no, actually, much more!

“Clinton made almost $100,000 in the cattle futures market,” reported Tom Brokaw, and “many wondered whether that was a sweetheart deal arranged for the governor’s wife.”
Of course it was.

In less than three weeks, Hillary turned $1,000 into $16,427. “I don’t understand how that could have possibly occurred,” she said. “My husband and I missed the fact that we had actually made some money.”

A hundred thousand dollars — twice what her husband made as governor. Who remembers trivia like that?

That was around the time of the Whitewater scandal, in which friends of the Clintons got sweetheart land deals. Seven people went to jail, but not the Clintons. Their records disappeared.

Hillary came on “20/20.” Barbara Walters asked her, “How did you get into this mess where your whole credibility is being questioned?”

Hillary answered sweetly, “I ask myself that every day, Barbara, because it’s very surprising and confusing to me.”

It is confusing to me, too.

Travelgate and Fostergate were also confusing, as is the Democrats’ sudden indifference to a president getting oral sex from an intern, deaths in Benghazi and, most recently, violation of State Department email rules.

“It would’ve been better for me to use two separate phones and two email accounts,” Hillary testified. “I thought using one device would be simpler.”

Except it turned out she did use two devices: “iPhone, OK, in full disclosure, and a Blackberry.”

She also said, “I took the unprecedented step of asking that the State Department make all my work-related emails public.”

Except that wasn’t true either. She turned over only emails she claimed were relevant. The rest were wiped clean from her home server — a private server government officials aren’t supposed to use. Then she refused to give that server to a third party for an independent review.

Consequences? Punishment? No.

New revelations in the book “Clinton Cash” about the Clinton Foundation accepting billions from foreign governments and people doing business with our government brought out the same “Aw, shucks” replies from the Scandal Manual.

Bill told a reporter, “I asked Hillary about this, and she said, ‘No one’s ever tried to influence me.'”

Anyway, the Foundation money went to charity. Hillary said, “I am very proud of the work the Foundation does.”

But what “work”? In 2013, a measly 9 percent of the money went to charity! Charity Navigator, the biggest charity rating service, won’t even list the Clinton Foundation in its rankings. This is repulsive. If a Republican candidate ran a charity that did that, it would be a scandal. But the Clintons must be immune.

Brian Williams “misremembers” his helicopter coming under hostile fire and loses his job. But Hillary says, “I remember landing under sniper fire … we just ran with our heads down to get into the vehicles.” That was total fabrication, but when Hillary was caught, she just told reporters it was a “minor blip.”

“I say a lot of things — millions of words a day — so if I misspoke, that was just a misstatement.”

Misstatement? I call it a self-promoting lie. But the Clintons are Teflon. In the presidential race, Betfair lists Hillary as the overwhelming favorite.

“Political language,” George Orwell wrote, “is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.”

John Stossel is host of “Stossel” on Fox News and author of “No They Can’t! Why Government Fails, but Individuals Succeed.”

John Stossel examined Hillary's armor, or the

ap_mike_huckabee_announcement

Former Arkansas Gov. Mike Huckabee waves to supporters in Hope, Ark, on May 5, 2015. (Photo: AP)

Former Arkansas Gov. Mike Huckabee announced he was running for president Tuesday, promising an end to bailouts, economic unfairness and an unaccountable government.

“I am a candidate for president of the United States of America,” said Huckabee during an event in his hometown of Hope, Arkansas. The 59-year-old former governor promised to dismantle at least two major federal departments, including the IRS, and gave a speech largely surrounding a message of economic populism. He said he was “blue collar, not blue blood” and took multiple shots at the gross unaccountability and out-of-control careerism in Washington.

“Washington has become the roach motel. People come in and they never come out,” Huckabee said. “As president, I will fight for term limits on all three branches of government. That would help return us to the founders’ dream that service to the public should be a temporary duty, not a lucrative career with generous paychecks and pensions that aren’t available to the people who pay for them.”

Huckabee won the Iowa caucuses in 2008 and finished a strong second in South Carolina, two of the largest of the early-voting states with large evangelical Christian populations. While most of the speech consisted of a message of economic growth, fairness and government accountability, the former pastor certainly tipped his hat to an important bloc in his 2008 coalition.

“The Supreme Court is not the supreme being, and they cannot overturn the laws of Nature and Nature’s God.”

However, the former host of his own Saturday show will face far stiffer competition and criticism this cycle. Huckabee became the third Republican this week to announce a 2016 White House bid, following Carson, a retired neurosurgeon, and former Hewlett-Packard chief executive Carly Fiorina on Monday. But they join Sen. Ted Cruz, R-Texas, Sen. Rand Paul, R-Ky., and Sen. Marco Rubio, R-Fla. Further, familiar critics of his 2008 run are back and already leveling charges against the governor’s record.

The Club for Growth Action today announced a $100,000 TV ad buy that will begin airing tomorrow in Sioux City, Iowa and Greenville, South Carolina.

“Governor Huckabee raised taxes; he raised them a lot and he raised them often,” said Club for Growth President David McIntosh.“ And, as our ad points out, numerous conservative organizations highlighted those massive tax increases when Huckabee ran for president in 2008. Since he’s decided to run again, and is still not telling the whole story on his tax record, then we’ll do it for him.”

Huckabee said in an interview Monday that the Club For Growth has never been honest in characterizing his record. He argued the group fails to account for the fact that — at the time — he was a Republican governor in a state with the least number of Republican state lawmakers and “had to learn how to govern.”

He also vowed adherence to the Tenth Amendment on issues such as education, saying the Department of Education “needs to be expelled.”

“Commonsense tells us that the best government is the most local,” he added. “I’m running for president because I know there is a difference between making a speech, and running a government that is accountable to the people.”

Former Arkansas Gov. Mike Huckabee announced he

service-sector

Service sector workers employed in a typical cubicle position. (Photo: Reuters)Service 

The pace of growth in the U.S. services sector rose to a 5-month high in April, fueled by increases in business activity that offset a sharp decline in exports. The Institute for Supply Management said its services sector index rose to 57.8 last month, up from 56.5 in March.

Economists polled by Reuters were expecting a consensus reading of 56.2. A reading above 50 indicates expansion in the sector, while below indicates contraction. April’s ISM index reading was the highest it’s been since November.

The ISM’s index of business activity rose from 57.5 in March to 61.6 in April, which was also the highest reading since November. Analysts polled by Reuters forecast a reading of 57.9. The employment index was essentially unchanged, moving to 56.7 in April, up barely from 56.6 in March.

However, the exports index plummeted to 48.5, down from 59 the month prior and to its weakest reading since February 2014. A Commerce Department report released Tuesday also found the U.S. trade deficit ballooned on weak exports and increased imports. Despite the upbeat services sector report, overall, data suggest the economy contracted.

The pace of growth in the U.S.

import-prices

U.S. trade deficit image depicting cargo ship at port. CREDIT: Reuters

A Commerce Department report Tuesday suggests the U.S. economy contracted in the 1Q, as the trade deficit ballooned to its highest level in over 6 years. In March, the trade deficit rose 43.1 percent to $51.4 billion, which is the largest since October 2008 and the biggest percent change rise since December 1996.

Further, February’s shortfall was revised up to $35.9 billion from an initially reported $35.4 billion. When adjusted for inflation, the deficit increased to $67.2 billion in March, the largest in eight years and up from $51.2 billion the prior month.

The report widely missed expectations, as economists polled by Reuters had forecast the trade deficit rising to $41.2 billion. Because March’s trade gap was far wider than the $45.2 billion deficit the government initially estimated when it released its snapshot of first-quarter gross domestic product (GDP) last week, the revisions all but ensure the economy contracted.

In that report, the government estimated that trade shaved off 1.25 percentage points from GDP, dragging economic growth down to an abysmal 0.2 percent annual pace. The economy reportedly expanded at a 2.2 percent rate in the fourth quarter.

By just how much growth will be revised down to show a contraction will not be known until the government publishes its second GDP estimate later this month.

In March, imports rebounded by 7.7 percent, the largest increase on record, to $239.2 billion. Labor disputes coming to an end in part fueled the import gain, but some of the imports likely ended up in inventories, which in the first quarter recorded their biggest increase since the third quarter of 2010.

Imports of food and capital and consumer goods, as well, were the highest ever on record, while imports of industrial supplies and materials were the lowest on record.

Imports of petroleum products also hit a record low, as lower crude oil prices and increased energy production in the United States reduced demand for foreign oil.

Meanwhile, exports gained 0.9 percent to $187.8 billion in March.

Still, exports of petroleum products were the lowest since February 2011. Exports to the European Union increased by 8.6 percent, with those to Germany reaching their highest level since October 2008.

However, the United States sold the fewest amount of goods and services to Brazil since April 2010. Exports to Canada and Mexico – the main U.S. trading partners – rose in March.

Exports to China jumped 13.6 percent, while imports increased by a far greater 31.6 percent. That left the politically sensitive U.S.-China trade deficit at $31.2 billion, up 38.6 percent from February.

A Commerce Department report Tuesday suggests the

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