Unfortunately for us, many of our “free trade” agreements have resulted in closed factories, soaring unemployment, and some communities engulfed in misery.
Tag Archives: Trade Deficit
Every year, hundreds of billions of dollars leave the rapidly depleting coffers of the United States and go to China. This huge transfer of wealth has resulted in dramatic effects for both countries. For China, it has brought about an economic boom; for the United States, an economic decline. Chinese loans to the U.S. government, to the tune of over $1 trillion, have made a large contribution to this result. Effectively, this has silently granted the Chinese government an alarming amount of leverage over our economy.
For four decades the U.S. has had a trade deficit with foreign nations. The U.S. trade deficit has caused millions of Americans to lose their jobs, it has devastated our manufacturing sector, and destroyed the American dream. In 2012, the U.S. bought $741 billion more goods than it sold.
Usually, anything with the term “free” on it has a positive connotation: free cookies, free appetizer, free purse with the purchase of any item over $45, this salad dressing is fat free. However, using the example of “fat free,”when we ran some studies on supposed “fat free,” we found nasty results. Fat free use to be this great, healthy thing for our bodies and it turned out being the total opposite. Now that people have been burned by “fat free,” they are buying less and less of it. The same issue has been going on with “free trade.” At first, it was great! It was this new idea of trade without tariffs or duties and that benefited any partnering country. However, after indulging 20 years in “free trade,” we realize how bad it really is for America.
By looking at cold hard evidence of how “free trade” deals have negatively impacted the U.S. economy, we often wonder how it’s possible that our elected leaders want more. President Obama is asking Congress to give him Fast Track in order to ram through Congress 3 huge trade deals, which one of them alone encompasses 40 percent of world GDP and 25 percent of world trade. By looking at the U.S.-Korean Free Trade Deal (KORUS), President Obama promised that it would increase U.S. goods by $11 billion which would support 70,000 jobs. A couple years later we’ve actually seen exports decline with South Korea, while our trade deficit has increased and we’ve lost 60,000 jobs.