What triggered the record budget deficits we have been under?

Question

and what has made our trade deficit get worst and worst all the time? Finally, can you say how our government's foreign policy helps cause high gas prices just a tad?

Answer 1

Multi-facetted question.
Budget deficit: Clinton swore we'd never again need such a large military. That we'd never again be in a two front war. Militarily, he almost killed us. Military's produce peace, and a great deal of money must go into making that happen.
Second only to the military budget is Human Resources (read welfare).
Trade deficit: Reagan suggested it and Clinton (again) made it happen, NAFTA and WTO. Sending (or allowing) all of our manufacturing to go overseas to countries that have no labor laws is killing us. And the driving force behind that exodus, are the labor unions of this country. They demand outrageous wages and benefits packages while producing inferior (for the money) products. Now add to the mix, the voting to increase minimum wage. When you calculate in the seniority system on which our country works, it only drives up the cost of the goods and services AND, the rate of inflation does not always stay at an even pace.
Finally: Gas. The true problem -- same one facing Iran, is that since 1976, no one in this country has been allowed to build a single Gas/Oil Separation plant. Not one (this was the doings of newly elected President Jimmy Carter and his EPA. I'm all for a clean environment, but there has yet to be any amount of moderation to promote building one). Of the few still in operation, there have been fires that have shut down the production and forced us to go overseas for that as well. There are the NIMBYs who refuse to allow us to drill for oil HERE so again, we are forced to be dependent upon foreign sources. And to that end, it all came tumbling down when Jimmy Carter openly acknowledged Israel. Since then, we have been feeling the wrath of OPEC. The only thing left to mention then, is greed. Not one president (or congress) since Carter, not the republicans, not the democrats, not even the once in a blue moon independent, has managed to correct the myopic mistakes of a moron who is now held up as a posterchild for the DNC and statesmanship.

Answer 2

Current Budget Deficit: caused by HUGE republican [congress in general] spending - military / war in part, but not the entire cause...bottom line Gov. getting bigger [self serving] in part... but, also to keep up with a booming world economic expansion. It's not just the federal Gov that is spending - local city and municipal spending - to add infrastructure / roads, etc - we built many new homes, buildings, etc - the Gov. provides the foundation of economic expansion... you kind of have to "spend money to make money (or expand the economy). But this is no excuse for poor fiscal responsibility either.

Trade Deficit: I don't like the Gov. stats and how this is measured - most of the basis of these numbers are antiquated. Good for headlines though. We have offshore [India based / China based, etc] call centers, etc - this is not counted. Many US jobs [not just mfg] have been moved offshore - business analysist, developer, engineer, CAD, etc. It's HUGE. Bottom line: lower cost labor is easy to reach and able to be integrated via internet communications and applications - just as I work from Home...10 miles VS 4,000 miles makes no diff. Education in India is 1/50 of the USA cost - an MBA for example costs @2,000 US. To be competative the US will need to re-educate and re-tool on a more efficient basis w/ less Gov and less taxes and less administrative and compliance burdons.

"High Gas Prices": Hmm - this is another major media reporting misnomer - the refined product prices [have been] abnormal of late - high- and profits for big oil refiners Aka Valero / Exxon / Chevron / Marathon had been HUGE (until this last Qtr) simply supply and demand - and the switch from MTB to Alc. additives for certain states - Cali and NY and certain other states had different formulation mandates.. in fact 12 or so different formulations were in use b/c of various state mandates - well...you can not "share" gasoline in the US - and it takes time for refinery output to switch...bottom line....we, cuz of politics, created an artifical shortage of distilant product AKA GAS in this country... this goes double for Disel - b/c we could have imported the low sulfur stuff and drove down prices had we mandated the standard... NOW this has happend and you are getting the surprise oil Co earnings Miss B/c of it! Too bad for Exxon today [that and the fact they held off on developing new reserves]. As far as US foreign policy on OIL prices... I think the $90+ /bbl is part related to falling $ price and part speculation / hedge funds using HUGE leverage to manipulate the futures markets. Example - Nat Gas is @$8.xx /MBTU - yet, we have just about run out of storage capacity for it - no place to put it b/c the south [typical energy is nat gas] is not using much A/C this yr b/c of a mild summer and fall.... AND LNG [the liquid form] is not easy to export - so, this is a local energy product... you would think prices should be @$5... and true, the futures show that high OIL for heating will cause some buildings to swap to nat GAS this winter - but, no WAY to the level of this price diff..... as per Bush and politics and China and demand.... IF the US Econ is REALLY slowing - and WE ARE the #1 consumer of OIL products... one would expect oil prices to decline - you don't drive to work if you don't have a JOB!@! AND if the US does not have JOBs - we are not spending money on China Exports - are we... but, China stock market does not reflect this either.... so - someone is not telling the truth.... is Bernanke on Smak - or is OIL being manipulated?

Answer 3

Maybe it's not all foreign policy. Possibly it's greedy american corps. Just possible? The hiring of illegals, a war that is bogus. Everybody blaming anybody. I gotta go. I forgot to take my prozac.