Tag Archives: Trade Deficit
Last week, environmental activists stormed New York protesting and asking for our leaders to make changes to the way we treat the environment. The U.N. throughout the week held hearings on climate change and the environment. We should do what we can for the environment, but what most people don’t realize is that on top of that, our dependence on foreign oil is adding massive amounts of money to our trade deficit.
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.
Though most Americans haven’t heard of it, the Trans-Pacific Partnership (TPP) is a disastrous “free trade” deal that is being negotiated in secret among 12 nations in the Pacific region including the U.S. Like previous “free trade” agreements this one would strip away any remaining protections we have placed for ourselves and allow other countries free access to our market, shipping American jobs and companies overseas. It would also rewrite many of our laws to the benefit of large, multinational corporations.
Economists want to spend money on our broken infrastructure. In fact, in the latest survey asking leading economists across the nation if they would increase spending on fixing our infrastructure, all 44 agreed. A report by the American Road and Transportation Builders Association estimated that roughly 1 in 10 U.S. bridges, more than 63,000, are in urgent need of repair. Last year, in its annual report card, The American Society of Civil Engineers gave the nation’s infrastructure a D+ grade. The study also estimated the U.S. would need $3.6 trillion in investment by 2020 to deal with its infrastructure problems. But just where would we get this money from?