What is America? We are a nation of consumers, which can easily be seen in our trade deficit. A current number is $236 BILLION dollars and growing at rate of approximately $15,000 dollars a second.
What does this number actually mean?
A trade deficit is a calculation of the difference between the goods and services Americans sell to foreigners and the goods and services that Americans purchase from foreigners. A trade deficit with one country or in one year is not necessarily worrisome, and according to standard economic theory, will correct itself over time. But the theory has been proved wrong over the last 30 years as the United States has run consistent and increasing trade deficits. The enormous size of the trade deficits over the last several years raises the possibility of a severe international economic crisis should foreigners begin to dump the dollars they hold in world currency markets. The trade deficit is calculated on an annual basis.(americaneconomicalert.org)
We buy goods from all over the world. We do produce things but certainly not a level that would help America to become a more self-sustaining nation.
The solution? On the surface, seems pretty simple. Become a manufacturing nation again. We can do it. Unprecedented levels of manufacturing were achieved to support our nation as we entered into WWII. Am I saying we should stop consuming? Not at all, consuming helps keep the economy going. To bring back economic prosperity, we must become manufacturers again.
Tuesday, July 20, 2010
Are we our own worst enemy?
Comments by IntenseDebate
Posting anonymously.
Posted by Kevin at 12:07 PM