In 2017, according to bea.gov (Bureau of Economic Analysis) the U.S. Trade Deficit was $568.4 B up from $504.8 B in 2016 and $500.4 B in 2015. By the time you finish this article you will understand why continuing this progression is catastrophic.
First and foremost both Republican and Democratic elected officials are responsible. They betrayed voters by promising to look out for the best interests of the people and communities electing them.
Imagine what would happen if the Trade Deficit were cut in half. To keep the math simple, $300 B of economic activity would be added to U.S. workers, their families, and the communities they live in. Conservatively estimated $50-60 B additional federal tax revenues collected. Not to mention increased state, property, and sales tax revenue yielding greater funding for schools, police, emergency services, and public aid providing food, housing, and medical assistance to the most vulnerable.
Charitable giving would also increase. Just 1% of the $300B would result in an additional $1B to help improve the Human Condition.
Imagine the economic impact of 300 communities benefiting from an annual increase of $1 B in economic activity. How economic benefit (jobs and spending) would fuel growth and prosperity. Or what $100 M in increased economic activity would do for 3000 communities. This would still leave the U.S. exporting an equal amount ($300 B) in economic growth abroad.
The ‘Talking Heads’ promoting ‘Free Markets’ fail to mention the tariffs and restrictions imposed on U.S. products and investments. Some even argue the cost of the Trade Deficit is off-set by cheaper consumer products (increased buying power). They fail to acknowledge the double-edged sword created; addiction to low prices accelerating the export of U.S. wealth, destruction of economic strength, the National Security it underpins.
The U.S. will win the battle for fairer trade as risks associated with the status quo become transparent.
Parents need to educate their children on the truth about trade deficits.
Friends who understand this dynamic must help friends who don’t.
Decision-makers must plan to migrate to domestic vendors.
Domestic producers must bring foreign manufacturing home.
Entrepreneurs have an opportunity to seize.
Most importantly we cannot afford to retain or elect evil Republicans and Democrats who have and/or will continue to sell out the people and communities they promised to protect by perpetuating trade deficits.