Nation of Debt (Part 3) The U.S. Trade Deficit

The U.S. loses $700 billion a year, thanks to over consumption and free trade. We need to buy less and build more if we want to survive. These are the real reasons for our current economic problems.

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[hoodoo961]

Ugh. This is fails to understand comparative advantage to begin with, but leave that aside. On a more basic note, he fails to explain that the reason we have a trade deficit is not because other nations are better at manufacturing (they aren't) but because the US invests more than it saves, meaning we spend more than we earn, leading us to borrow from abroad, leading to a trade deficit. Its summed up in the indentity S-I=X-M. Basically, we need to save more to balance our trade.

[hamace]

All we need to look at his history to know that trade deficit is going to be the end of the 50 State union. If a nation wants to prosper as the USA did, we need to manufacture as much as possible.

China knows this Japan gets it ,how is it that may economists, who wrongly defend the deficit, do not?

Who had the global reserve currency? WHy are we about to lose this huge advantage?

Why are we borrowing from and who? What happens when we have no more value to our creditors?

[hamace]

FDI is only part of the picture. As foreign investors pick the US part, how is this helping the dollar and the unemployed.

The very fact that we are now borrowing just to survive is not good.

You should refrain from insults, in this forum it is pretty pointless anyway

[hamace]

Screwed? Maybe, but since they make products that people want and need, they will continue to do business and adapt to circumstances...as the USA used to do. Nothing is perfect but Japan is our best trade partner, if we lose their investments we will be even weaker. The US needs to refocus on textiles. There is no reason we are importing clothing.

Our gov is so corrupt, and Americans so uninformed I don't see the USA overcoming our trade deficit

[HemiHead66]

This guy is right. Last week Japan was complaining about our Government stepping in to save and restructure GM because it would put them on a level playing field with them. They also said it's against WTO rules for our Government to save American auto companies. But it also leaves Japan with a problem. They use the same supply channels. If GM and Chrysler were to go under the parts suppliers would start shutting down and Toyota and the likes would be screwed.

[AnthonyFamiglietti]

Unfortunately for you. I'm no pseudo conservative, and unfortunately for you, American conservatives outnumber American liberals 2-1, that was reported by gallup. Your liberal president with his puppet nancy pelosi are quickly turning your popular democratic party into a trainwreck. ; ]

I'm not worried about the National Debt. Democrats are making it larger. Good luck trying to throw that blame on conservatives.

[bluenote71]

And you're just another pseudo conservative who resorts to name calling because you're incapable of discussion. Bad news, Anthony: you're in the minority, and you aren't fooling anyone.

[AnthonyFamiglietti]

You're very uneducated. Wow, you can toss words around like comparative advantage...and it ends there. The U.S. Trade Deficit is not bad at all. In fact it's dangerous that so many americans feel this way. Because what idiots like you tend to not realize is that american FDI (Foreign Direct Investment) is 2.5 times LARGER than our exports. And unlike what most say, that is to developed countries of Europe and Canada, not poor 3rd world countries where people are unfairly treated. You're an idiot