U.S. Trade Deficit Is Considered Very Harmful
What is the balance of trade? The balance of trade is the monetary value of exports and imports of an economy over a given period of time. A country can have a trade surplus or it can have a trade deficit.
Source Of Chart: Wikipedia
If the U.S. trade deficit is not harmful to the United States, why then is the U.S. in so much debt? China and Japan exclusively own 44.80% of U.S. debt.
Note: China and Japan are the leading countries contributing to U.S. trade deficits. Is this correlation just a coincidence?
Top 10 Countries U.S. Trade Deficits (Jan 2009)
Country / Millions Of US Dollars $$
1. China / - 20,569.89 *
2. Japan / - 4,302.13 *
3. Mexico / - 2,684.00
4. Canada / - 2,489.90
5. South Korea / - 1,936.51
6. Germany / – 1,664.65
7. Ireland / – 1,549.12
8. Taiwan / - 1,340.61
9. Saudia Arabia / - 1,290.57
10. Italy / - 1,248.75
Total Trade Balance Of January 2009 = deficit of $36 billion
Source: U.S. Dept. of Commerce & U.S. Bureau of Labor Statistics
1979 – 1995 Statistics
Imports: $212 billion – $749 billion = $1.7 trillion trade deficit
Manufacturing Jobs: 21 million – 18.4 million = 2.6 million job losses
The US trade deficit hit a record high of $817.3 billion in 2006.