The United States is considered to be a rich country. We have accumulated much abundance through most of the twentieth century, as we were a very productive country whose wealth derived to a great extent from manufacturing. Our companies invented and produced many of the things we needed, plus much of what the rest of the world needed.
Years of unfair trade and poor policy have torn apart the manufacturing base that once made the American economy strong. However, America was not always a slave to these disastrous free trade ideals.
The longer the United States runs a trade deficit, the more damage we do to our country. Our massive trade deficit is sending hundreds of billions of American dollars overseas every year. Our free trade deals have put our manufacturers out of business, and they have made the American public reliant on foreign producers to meet their everyday needs. As we spend more money on foreign goods, there is less money available to be reinvested in American manufacturing.
Many economists in the United States have turned their attention to the economies of East Asia for models of success – and with good reason. However, Germany is currently providing another paradigm for excellence, and the U.S. should take notice. Germany’s income is more evenly distributed than the vast disparity that exists in the U.S.
Our political leaders often play off the downturn in American manufacturing by touting a focus on areas such as new, high tech manufacturing and alternative energy, but it appears China has the same goals and is taking targeted steps to meet them.
Trade Reform The Economic Collapse Blog
