Economic Outlook: Economic dysfunction - UPI.com Release of U.S. trade balance figures and the labor situation report on the same day is all an economist needs to spell out the ABCs of economic dysfunction. Release of U.S. trade balance figures and a labor situation report on the same day is all an economist needs to spell out the ABCs of economic dysfunction. The numbers, University of Maryland economist professor Peter Morici said, are a matter of two plus two. The U.S. trade deficit is growing at a rate of about $48 billion per month, putting last year's total at $558 billion out the door, up from a deficit of $500 billion in 2010. In December, the trade deficit with China fell slightly to $23.1 billion, down from $26.9 billion in November - and average, rounded off, of $25 billion a month. The deficit with the European Union came to $9.7 billion in December, while the deficit with the Organization of Petroleum Exporting Countries came to $9.1 billion. Between the three, in rounded figures, that comes to $44 billion or 91.6 percent of the trade deficit, which any economist worth his or her salt translates into these words: Jobs drain. Trade deficit, jobs drain. Say it until it sticks in your head. In comparison, the Commerce Department reports that in current dollars the country's gross domestic product increased by 3.9 percent in the fourth quarter to $144.7 billion. The trade deficit, in other words, at $48 billion per month times three months comes out, remarkably, to $144 billion. No matter how you say it, in current dollars the United States is giving away the farm. It's no wonder, then, that 75 percent of the reduced unemployment rate in the past two years has been generated by people aging out or giving up on the labor market. As far the percentage of adults working, that is at 58.5 percent, and it is stuck right there. It balances out, but it balances out to a big, fat zero. The Dow Jones industrial average found its way above 13,000 points in late February for the first time in May 2008. But many wondered if the recovery was soft - not sitting on a firm foundation. It was and this week the Dow tumbled, losing 203 points in one day. This is why the stock recovery has been soft. Gains in manufacturing are not going to lift the GDP much, given that consumer spending accounts for more than 70 percent of the country's economic output. That means with no gain in jobs in real terms, the economy will continue to lie, essentially, flat. In international markets Thursday, the Nikkei 225 index in Japan added 2.01 percent, while the Shanghai composite index in China rose 1.06 percent. The Hang Seng index in Hong Kong gained 1.32 percent, while the Sensex in India lost 0.16 percent. The S&P/ASX 200 in Australia gained 0.66 percent. In midday trading in Europe, the FTSE 100 index in Britain rose 1.03 percent, while the DAX 30 in Germany rose 1.61 percent. The CAC 40 in France climbed 1.64 percent, while the Stoxx Europe 600 gained 1.05 percent.