Trade deficit- exporting more than importing. The country is becomming indebted to hte rest of the world. In 2004, hte United States deficit was $665.9 billion, which is 25.5 percent higher than hte previous record which was $520.7 billion in 2003. the deficit is worsening as the year ended. There was a shortfall in hte forth quarter gaining a record of $187.9 billion. It's up to 13.3 percent from hte third quarter deficit. The growing trade deficit reflect a U.S. economy that is growing faster than the rest of hte world, pushing.... bell rang im at school
And where is China putting all that surplus money? Their military and investing in bonds (financing OUR debt!). Maybe if the Russians had adopted the economic mass marketing of cheap goods in the 60s our big corporations would have been eager to get our foreign policy changed to pro-Soviet.
Importing is not "losing" and exporting is not "winning". If other nations lend us money (buy our bonds) why is that bad?
You ever been to China? I don't want their government (communistic/fascism) to have leverage over this country.
I think we disagree on this one Pointbreak. If the trade deficit continues unchecked, countries like China and Saudi Arabia will gain a stranglehold on the American economy (if they don't already). They'll have so many American dollars that they could literally make the American economy grind to a halt if they wanted to.
Yes I have been to China. Technically speaking I lived in China since I lived in Hong Kong post 1997. But I am still happy to take their money. Name two countries which have consistently had trade surpluses for many years: Japan and Germany. What do they have in common? Their economies are stagnating. Ours is not. Trade surpluses are not necessarily good. It is laughable to suggest that China or Saudi Arabia have a stranglehold over the US. The reverse is true. Their economies are puny in comparison, and far less structurally sound. We should continue to take their money as long as they want to give it to us. We should be more concerned that THEIR economies remain sound.