There are two great debts the American people have, yet there is only one debt the nation talks about. These twin debts are the national debt–money borrowed from the nation against itself compiled with money borrowed from other nations–and the trade deficit–money given to other nations for imported products and services that will, at some point, come back to buy out the United States.
Tag Archives: Trade Deficit
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.
One of the main reasons our Free Trade Agreements (FTAs) do not work is due to the fact that other countries immediately implement a value-added tax system after joining the World Trade Organization (WTO), while the U.S. still has not implemented a VAT. Free Trade Agreements either eliminate all or most of the tariffs between two countries. Once a country joins the World Trade Organization (WTO) that country then almost immediately implements a VAT system or raises their VAT to replace their tariffs. The VAT acts just like a tariff but is entirely in line with WTO standards. The result of this system is that American exports are essentially blocked by other nations.
California’s Fair Political Practices Commission has announced a fine of $1 million against the apparently ironically named Americans for Responsible Leadership. The violation was an illegal political contribution of $11 million. This just highlights the seemingly intractable problem of money corrupting our system of government.