How do we (The U.S) plan to erase this huge trade deficit?

Question

Is there an end in sight of this mass spending? How many years will this set us back?

Answer 1

Hard to do. Clinton pushed the world to let China join the WTO. It is now very difficult to put sanctions on China for trade violations.

Both China and illegal aliens slow tax revenue growth. They are causing the lowering of family incomes for middle class Americans.

Because of Clinton, China's GDP is growing 250% faster than the U.S.'s. That will bankrupt America. Goldman Sachs predicts China will replace the U.S. as the number one economic giant . ( http://www.the-global-institute.org/act/2006conference/Linn%20-%20Economic%20growth.ppt )

Clinton has seriously damaged the U.S. economy. Because of Clinton the trade deficit with China will top $1 trillion a year within 10 years. revenue growth. That will bankrupt America, which is China's grand plan.
http://graphics.jsonline.com/graphics/bym/img/mar06/CHINA24g.gif

The only thing America could do is to put limits on foreign investments through the elimation of taxbreaks. China, South Korea, and many other countries put limits on foreign investments to build up their countries' wealth and standard of living. China mainly does it to have a hundred billion dollars to spend on its rapid military build up and to bankrupt the U.S..

Answer 2

We cannot erase a trade deficit. We can only work to re-balance the trade.

We should not limit the freedom of the American Consumer from buying a foriegn made product. - Rather strive to make the American product a better choice for all Consumers. Our American Businesses are - after all - "in market competition" with the world.

In the same way, we should not limit the freedom of the American Private Enterprise from the ability to select foriegn options (such as labor) for the operation of their business. - Rather work to provide domestic options that are better choices for all Businesses.

Both of these positions are Societal Long Range Design models that would take generations to build. In the mean time, education is our best tool.

One method considered though is to "withhold" certain Governmental Services and Allowances from companies and/or individuals of an equal value to the "loss" experienced when that company or individual chooses to engage in unfavorable trade. This could not however be in the form of a Tariff or Tax or Penalty or Fee.

LuvJo

Answer 3

Yeah I'm also unsure of whether you mean the trade or budget deficit. If you're talking about the trade deficit, that is more worrisome. Hopefully, we can start getting more skilled workers and engineers to stay in our nation and start exporting more technical goods as other nations develop.

If you're talking about the budget deficit, it has existed forever, and grows proportionally with inflation. Also, a more telling sign is not simply the size of the deficit, but the difference in the deficit and GDP. Higher government spending almost always leads to higher GDP, which greatly benefits the people. Budget deficits are not only necessary but beneficial.

Answer 4

At present there isn't any proposal to eliminate either the trade deficit or the budget deficit. Both could become problems for America, and in all likely hood our grand children will still be paying off the federal deficit accumulated during this administration.

Answer 5

Do you mean the "trade deficit", or the "budget deficit"?

In the macro-economic sense, neither is a huge worry. The budget deficit increases our debt, but the deficit - and the debt load overall - are less than they have been in the past, when compared against the size of the US economy (the engine that generates the taxes that must service that debt).

As for the trade deficit, yes, we buy much more from, say, China, than they buy from us. That gives them lots of cash, which comes back to us when they buy our treasury bonds (i.e. they loan us money). So the money comes right back to the US, and our economy is growing faster than the debtload, so we're ok.

Answer 6

It's up to the consumer, not the government. You guys buy goods from other nations, and you move manufacturing sector jobs to them, buying even more in the long run. Not many consumer goods are made int he US, and your closest neighbour and largest trading partner (Canada) has all the resources you're ever going to need.

so basically through buying goods manufactured in other countries, and buying resources (mostly from Canada), it's no wonder there's a trade deficit.

Answer 7

The US cannot erase the trade deficit or control the national debt which is rising by trillions of dollars a day,we are heading for a big crash my friend.

Answer 8

A better question is whether or not we should care about the huge trade deficit?

The trade deficit is the natural progression of balance between capital (the US has got it) and labor/resources (the rest of the world.)

Setback & spending?

Maybe you are thinking of the federal deficit?

Answer 9

Keeping with the tax cuts are generating enough income and are making rather quick work of reducing the deficit long before it was scheduled to.

Answer 10

Well, nice to hear from you Mr.Radio Show Host, if you would donate all the money you spent on oxycontin we wouldn't have a deficit.