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?
Tag Archives: Trade Deficit
When NAFTA (North American Free Trade Agreement) was passed, many people feared the worst. The results have indeed been disastrous for the U.S. Economy:
- The trade deficit with Mexico has exploded
- Mexican wages remain nearly as low as they were prior to NAFTA and are still a small fraction of our average wages
- Wealth and power has not filtered to the people. Most of Mexico is still controlled by less than 100 corporations in Mexico
- Many of our other trading partners have relocated facilities to Mexico to circumvent other trade agreements with the U.S.
- American manufacturing has lost 1 million jobs in the past 20 years as U.S. companies have also moved to Mexico for lower wages and lax regulation
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.
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.
In just 30 years the United States has fallen from superpower to third-world status – dependent on imports and debt to maintain a semblance of our former standard of living. Our trade deficit is spiraling out of control, now over $625 billion per year and heading higher. Our factories are closing up and we are losing the ability to produce what we need to live.