Trade Deficit: The means through which foreign countries are able to amass the funds to buy out American companies and industries. Trade deficits are just like other debts in many respects. They must be repaid. When our country buys more than it sells from other countries, these other countries accept our dollars. These dollars must eventually return to the U.S. and be exchanged for something of value. Since we are producing less and less, in all likelihood, the trillions of dollars will come back to buy our assets and wealth producing companies. This has resulted in many of our core industries now being controlled and managed for the benefit of foreign companies and countries.
Tag Archives: Trade Deficit
The United States is facing economic disaster on a scale few nations have ever experienced. Most people are unaware of the easily observable signs of this crisis, where it came from and how to stop it. While we persist in our superpower mentality, we have quietly become a second-class country in many respects.
For 2014 the United States is set to have a record trade deficit with China. As of October of this year our deficit has totaled $284 billion. With two more months to be included, that number could rise into the mid 300’s. Our trade deficit is especially harmful as this money leaves our shores and comes back to buy out our companies and land. This has nothing to do with the fact that China recently became the largest economy in the world, it has to do with the fact that we have a broken system.
Americans are deceived into believing they benefit economically from outsourcing, offshoring production and an unprecedented trade deficit. In reality, the United States giving up its wealth for plastic trinkets and outsourcing is the cause for rising poverty and joblessness all across the nation.
As we come to the closing of another year of economic instability as a nation, we continue to ask where the jobs are. Where is the American manufacturing growth we were promised with good wages and full time hours? We all are looking for ways to help the economy. Some of us think that by buying goods in our stores we’re helping, but in reality we are just increasing our nation’s trade deficit and shipping more jobs overseas.