The United States’ trade deficit is a big problem. This is an ongoing issue with no end in sight as the disastrous so-called “solutions” our politicians propose are actually the main problem. Exports are great, but not at the expense of a flood of job-killing imports. When we open up our borders through “free trade” we do far more harm than good.
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
In 1950 one out of every three American workers was employed in the manufacturing industry. America was the manufacturing superpower of the world, and our middle class was both booming and enjoying a high standard of living. We were the richest and most productive country in the world.
Not only has “free trade” led to the largest transfer of wealth in the history of the world, but trillions of American dollars have been lost due to the removal of tariffs, resulting in trade deficits. Additionally, “free trade” agreements are nearly impossible to enforce because they assume that every participating country will play by the same rules. This is seldom the case.