U.S. trade deficit sets another record

[Solve et Coagula]

U.S. trade deficit sets another record

 

Last Updated Fri, 10 Feb 2006 10:06:10 EST

CBC News

 

The U.S. trade deficit soared to an all-time high of $725.8 billion US in 2005, up 17 per cent over the previous year, as Americans imported record amounts of oil, food, cars and other consumer goods.

 

The deficit with Canada hit an all-time high, as did America's deficits with China, Japan, Europe, the OPEC countries and Latin America.

 

It's the fourth consecutive record year for the United States, raising more concerns about President George W. Bush's trade policies.

 

FROM JAN. 18, 2006: Buffett warns of turmoil with U.S. trade deficit

 

The country has lost nearly three million manufacturing jobs over the past five years, while its debt has risen to levels that concern many economists.

 

Billionaire investor Warren Buffett warned last month that the U.S. trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt.

 

"In my view, it will create political turmoil at some point," he said. Pretty soon, I think there will be a big adjustment."

 

http://www.cbc.ca/story/business/national/2006/02/10/usdefi-060210.html

[Racoon]

Why can't we say no to all this import crap?

and start making stuff here again?? :hihi:

 

Why buy a freakin' Hyundai? Buy a damn Ford or GM instead!

 

I'm not against Free Trade, but Lets support Made In USA!!! :)

 

However, it should be pointed out, that our manufacturing based economy is/has switched to a Service based economy... Adam Smiths Free Hand Economy.

 

It would also help if other Countries wouldn't Pirate USA's intellectual properties. (ie Movies, music,..) :eek:

[TheBigDog]

I don't see what the problem is for you Solve. You are a socialist infavor of the redistribution of US wealth to enrich the underprivlidged in the world. This is capitalism doing just that for you. You should be all for US trade deficit.

 

Bill

[GAHD]

@racoon: YAR!

[C1ay]

Why can't we say no to all this import crap?

and start making stuff here again?? :hihi:

 

Why buy a freakin' Hyundai? Buy a damn Ford or GM instead!

 

I'm not against Free Trade, but Lets support Made In USA!!! :hihi:

The reality is that is is cheaper for manufacturers to make their products elsewhere. Ford and GM are losing ground to imports because the manufacturers of those imports are not hostages to the UAW. Manufacturing is becoming globalized and Americans workers need to come to grips with the fact the menial blue collar labor is only worth so much. Why should an American automaker pay some worker $30 an hour to tighten ball joints on the line when their are unemployed workers around the world that would be haqppy to have that job for a fraction of that pay.

 

Look at the Hyundai workers. They are not underpaid, third world laborers working in a sweat shop. They live in one of the most technologically wired nations of the world enjoying for the most part a better living than their American counterpart. At the same time Hyundai is not paying the janitor $30 an hour to keep the floor swept and the toilets clean, they are paying what the job is worth.

 

The software industry offers another insight into imports and outsourcing. An American software company can hire degreed software engineers in India for around $20K annually. Those same engineers would cost $70K+ in the U.S. It is obvious that he can compete in the market place more effectively with the Indian engineers. You also can't blaim the Indians for working to earn such a paltry sum because that $20K in their economy is equal to about $100K in the U.S.

 

The world economy is globalizing. The are millions of available workers around the world that are currently unemployed. Their countries will gladly welcome manufacturing companies to provide them jobs. With the increasing transportation technology available to enable manufacturers to easily ship their products from facilities located anywhere in the world it is time for many Americans to realize that they are now competing for employment globally.

[Racoon]

You hit the nail on the head Clay. :hihi:

 

Globalization WILL/IS happening.

Adam Smiths Free Hand Economy!

 

How do we reduce Trade Deficit???

Is it a good or bad thing???

 

We import more than we export.

Toyotas are made here cuz the Japs earn too much over there. Same as manufacturers moving down to Mexico to save labor costs.

 

Still, Trade deficit could be reduced if other countries wouldn't Pirate Intellectual properties like Movies, music, software..and they actually paid for em'.

 

We talk about Trade Deficit. Is it inconsequential??