Most Americans lack the economic training to understand the complexities of the consumer price index, GDP growth per capita, the differences between gross domestic product and gross national product, or many of the other statistics released regularly by different bureaus and departments within the United States government. There is nothing wrong with not being an expert in these areas, but the general lack of understanding has led many to simply overlook key economic issues. This problem is not only an obstacle to the public, many within the halls of government simply overlook our problems or brush them off.

There is however one thing that seems to always draw attention; unemployment. Unemployment in the United States has been a hot button issue for Democrats and Republicans ever since the 2006 mid-term elections. Each side blames the other for our impasse, while completely overlooking the actual culprit. President Barack Obama isn’t any more singularly responsible for the job market stabilizing in the past year than President Bush was for it collapsing two years ago.

The policies supported by President Obama do seem to have a better chance at stopping the blood letting. But so long as our economy persists on a “free trade at all costs” ideology we will never truly heal.

The non-partisan, Washington-based Economic Policy Institute has released dozens of reports on the state of the American economy, as well as things that must be done to reverse our negative trends.

Robert Scoot, EPI’s senior international economist, published a long piece outlining the negative feedback of the U.S. trade imbalance with China.

One of the highlights of the research is the drastic change in American economic growth prior to George W. Bush’s election and after. President Bush pushed hard for “normal” relations with China; what this translated to was the U.S. opening its borders to Chinese goods without the previous duties and blockades it had once employed. According to the EPI, from 1989-2000 (a time of American economic dominance) output grew at 3.5 percent annually, productivity grew at 3.8 percent annually, and the number of hours worked by employees declined at 0.3 percent annually. In essence, workers did more with less for more than a decade as our economy bustled.

However, from 2000-2007 workout output only increased by 0.5 percent annually (down from 3.5), productivity increased at just 3.7 percent (down from 3.8), and employment hours declined by a staggering 3.1 percent annually (up from 0.3). When the “free trade at all costs” Bush administration took office it disregarded the negative effects of federal deficits and trade deficits almost completely. It focused on supporting multinational corporations, which in turn supported the share prices of multinational corporations, which in turn supported the financial economy and the major banks feeding from speculation on Wall Street.

The fact that employment fell off a cliff during their tenure, and the fact that from 2000-20009 not one net job was created in our economy – despite population growth in the tens of millions – was considered less important that shareholders and bottom lines. Losing our economic luster to factories in China, let alone to every other country that is allowed to poach our manufacturing, was meaningless so long as the ones at the top cashed in. The ballooning trade deficit, the over emphasis of financial institutions, the looming debt crisis and the ongoing loss of employment did nothing to shift focus in Washington.

From 2005 to 2009 the United States lost $1.19 trillion to China alone. If instead of trade deficits the United States had fair parity with China in international commerce, our economy would be worth more than $1 trillion more than it is today.

The U.S. China Business Council (USCBC) claims that the trade deficit between the U.S. and China has not affected growing American unemployment. Then again, the USCBC represents the interests of huge multinational corporations who profit from investing in Chinese facilities and Chinese workers.

The Alliance for American Manufacturing operates a Web site showcasing precisely how and where our jobs were lost. Obviously the job losses are happening. Millions of American workers can attest to the fact that the job losses are happening. When their facilities are shut down they all know precisely where the new plants are being opened up. Yet the issue goes overlooked and unchecked in Washington.

America may not be able to bring back every job it has lost to China, Mexico, Canada, Japan, South Korea, Thailand or any number of other countries; but it can take steps to make sure we don’t lose more. Eventually, by restructuring our trade relations and doing away with the archaic, and incorrect idealism of “free trade” we can begin our comeback.

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