U.S. Trade Deficit Soars to Horrifying Heights

The U.S. trade deficit peaked at $725.8 billion, an all-time high, in 2005, and it was propelled skyward due to record imports of oil, food, cars and other consumer goods.

On February 10th Martin Crutsinger of the Associated Press reported, for the "fourth consecutive year… America's trade deficit has set a record as American consumers continued their seemingly insatiable demand for all things foreign from new cars to televisions and electronic goods."

Crutsinger stated that imports rose "12.9 percent to an all-time high of $2 trillion, swamping a 10.4 percent increase in exports, which reached a record high of $1.27 trillion."

Reading this, I wondered if the American people even care about their nation, their homeland. Yes, we are exporting more than ever before; however, our percentage of increase is not as accelerated as our imports.

I hear, it must be all the time, that outsourcing, off-shoring, and globalization eliminates American jobs, leaving millions unemployed for the gain of a few. I would argue the 4.7 unemployed rate (7.2 million individuals) is the lowest for a number of years.

Furthermore, Thomas L. Friedman, New Times columnist and author of "The World is Flat: A Brief History of the Twenty-first Century," talked about China's embracement of free market trade, thus globalization, and "how [they have] managed to pull more people out of poverty faster and in larger numbers than any country in the world by adopting a pro-globalization/trade strategy."

I am an avid free trade supporter; ergo, I support the North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA). "Why?" you might ask. Besides the results Friedman spoke about with China's impoverished citizens, the NAFTA and CAFTA are the only way for America as well as the Americas to compete with countries, such as China and India. At the same time, it helps the development of all involved nations--that is, economic-wise.

Check this out. If one buys a textile product made in China, 100 percent is made in China. Yet, if one buys that product made in El Salvador (one of the six nations in the CAFTA), 60 percent is produced in the U.S., while 40 percent is constructed in El Salvador. So, in return we, by buying textiles from the nations in the CAFTA, help to keep more American jobs in the States than if we purchase ones made in China or elsewhere.

The trade deficit, being so high, horrifies many and with good reason. It is especially horrifying, when $201.6 billion of the deficit is due to imports from China--still being a police state socially.

Crutsinger added, "The rising trade deficits must be financed by increased borrowing from foreigners, who so far have been happy to sell us their products and hold U.S. dollars in payment which they invest in U.S. stock, bonds and other assets."

He concluded, "The concern is that at some point foreigners will want to reduce their dollar holdings. If the change occurs at a rapid pace it could send the value of the dollar, U.S. stocks and bond prices all plunging."


The person editing page four in the Parthenon this week took some liberties, which I disagreed with and thus changing the meaning of a sentence or two. So, I am posting my draft. Next, I wonder if the person who titled this column, “U.S. Trade Deficit Misleading,” actually read it, and because of that I am not posting that title as the title of this ed-op piece.