There was a time when we protected our nation and had an economic plan. Because of this plan we became one of the strongest nations on the earth. Much has changed and if we do not work for our best interest we will lose what little is left of our economic strength. Our downfall has not been mere chance—it has been a result of an economic war China has waged on the U.S.
Tag Archives: Manufacturing
When NAFTA (North American Free Trade Agreement) was passed, many people feared the worst. The results have indeed been disastrous for the U.S. Economy:
- The trade deficit with Mexico has exploded
- Mexican wages remain nearly as low as they were prior to NAFTA and are still a small fraction of our average wages
- Wealth and power has not filtered to the people. Most of Mexico is still controlled by less than 100 corporations in Mexico
- Many of our other trading partners have relocated facilities to Mexico to circumvent other trade agreements with the U.S.
- American manufacturing has lost 1 million jobs in the past 20 years as U.S. companies have also moved to Mexico for lower wages and lax regulation
When comparing the U.S. to Japan, Japan has less land, a smaller population, less oil reserves, double the air pollution, lower wages, they depend heavily on raw materials for their industrial sector and have to import 60 percent of their food. So how is it possible that a country with so many things working against it can have a trade surplus with the U.S. and an lower unemployment rates? According to the Office of the United States Trade Representative, in 2013, the U.S. in fact had a trade deficit with Japan at $73 billion! They are our 4th largest goods trading partner, importing wine and beer, foods, vegetable oil, machinery, electronics and medical instruments. This tiny island has proven that they are doing something right and we are not.
In 2013, the United States spent over $300 billion on importing oil. Essentially two-thirds of the country’s entire annual trade deficit can be blamed on oil imports! Oil is sucking hundreds of billions of dollars a year out of the U.S. economy. If we became energy independent, our trade deficit would be cut tremendously. Not only that but our money could begin to go to American-owned energy producers.