In order to gain acceptance into the World Trade Organization (WTO), nations are required to meet certain regulations to open their markets up to foreign exports. This includes the abolition of things like tariffs or any other number of practices that could be interpreted by the WTO as “barriers to trade.” Countries are expected to continue adhering to these regulations and restrictions for as long as their membership is current. And the United States has mostly held up its end of the deal, in spite of the handcuffs that WTO policy has placed on economic growth.
Category Archives: Featured
While many politicians blame the lack of jobs on the federal budget deficit, it is actually America’s trade deficit that is the root of our problems. The U.S. is still millions of jobs behind where it was when the Great Recession started, and now has fewer people employed than in 2001. The economy has been unable to create jobs due to America’s massive trade deficit caused by failed economic policy.
As unemployment has taken its toll on the United States, politicians continue to echo that education is the answer to the economic crisis. The question is: how will the well-educated ever provide for themselves when all the means to create wealth are flowing out of the country? Over the past twenty years, the United States has lost a massive number of lower and middle class value-added jobs. These are largely the manufacturing jobs that allowed the United States to support its own needs and export goods, which builds real wealth.
Recent economic reports, including some by the Economic Policy Institute (EPI), have delved into the devastating damages done to the American economy because of our sky-rocketing trade deficit. It’s no secret that the U.S. trade deficit is high. After all, our trade deficit is responsible for the transfer of over $1 billion a day to foreign countries. The EPI report took it a step further and claimed that our trade deficit increased our budget deficit by between $78.8 billion and $165.8 billion in 2012.
So-called “free trade” agreements, along with multilateral agreements like the World Trade Organization, are supposed to be beneficial for the United States, but experience has shown that they instead open the United States to a series of abuses by foreign nations. One of the most damaging aspects has been the impact of foreign currency manipulation on U.S. industries. We have no way to counter this practice, and it is devastating our economy.