We Can’t Continue Living on Imports and Debt!

debt

If we are to survive as a nation we must change our economic policies now. 

This is unsustainable. The facts speak for themselves:

  • Our trade deficit is now around $600 billion per year. This means we are sending $1.2 million out of the country every minute, on average
  • The yearly budget deficit is hundreds of billions of dollars
  • Accumulated national debt is over $17 trillion
  • Total consumer debt in the U.S. is $11 trillion
  • Student loan debt is approximately $1.1 trillion

We are racking up this debt at an unprecedented rate, and there is no end in sight. We have been living on deficits and debt for years and are not producing enough to ever pay these debts. We haven’t had a trade surplus in decades!

We must stop this way of doing things immediately, or our money could be worthless before we know it. This is not conjecture, it is an inevitability if things continue as they have been.

How can (must) we do this?

We need to fix our trade deficit, and that means we need to stop “free trade” immediately. “Free trade” allows unrestricted, uncontrolled access to our economy for goods made overseas at labor costs far below ours, sometimes as low as $2 per hour, tariff- and duty-free. We cannot compete with these labor costs, so we must outsource our manufacturing or see our factories go bankrupt. This renders us noncompetitive and sends the middle class jobs we once depended on overseas, devastating our economy.

We must strategically use tariffs, as we have successfully done in the past. Tariffs were the major source of income for the federal government for much of our nation’s history. More importantly, though, they helped to protect America’s industries from foreign competition and allowed America to become the world’s most productive nation. Many of our most successful presidents, including FDR, Kennedy and Reagan, have used tariffs to help our nation’s economy, yet we have neglected them recently, to our detriment.

We must also reform our tax system, and institute a competitive tax plan, including a border consumption tax. The form of a border consumption tax is used successfully by most of our competitor nations, and many respected American politicians, such as former Senator Ernest Hollings, have proposed a border consumption tax as a way to jump-start our economy. Senator Hollings states that by lowering income taxes, eliminating the corporate tax and using a border consumption tax we could bring in substantially more income for the United States while creating jobs, leveling the playing field on trade, and spurring investment in domestic production.

The border consumption tax would also allow companies to repatriate the trillions in funds they currently hold overseas and reinvest them in the United States, encouraging domestic production.

We can still get our country back on the right path, but we must immediately stop our failed “free trade” policies and return to policies that work for the United States.

For more information on the state of the nation, and policies to strengthen our weakened economic condition, be sure to subscribe to receive our newsletter twice weekly. 

2 Responses to We Can’t Continue Living on Imports and Debt!

  1. BIGuru says:

    And we must Implement Advanced Industrial Ecosystems – that is an area that neither main stream nor side stream can think about it. If not, this civilization dies….while talking about it in the abyss…

  2. zaidi says:

    America has been surviving on debt since last four decades. It never generated surplus. Historical position post second world war allowed America to enjoy a beneficial status throughout the world for quite a long time. All the countries invested and maintained reserves in dollar for settlement of international trade obligations. Historically analysed , all the welfare schemes going on in the country are not sustained by surplus generated within the country. They are being sustained on debts and they will continue to be so. Even Europe is also on the same lines. Take the example of China and India . These countries are generating surplus to sustain the welfare activities for the poor. In a nit shell this is historical cycle which taking place and nothing is permanent. At some point of time there is stagnation also.

Add Comment Register



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Powered by WordPress | Designed by: diet | Thanks to lasik, online colleges and seo