U.S. Trade Deficit

Paper Summary:

The paper demonstrates the positive side to America's trade imbalance by showing how the trade deficit has not impeded America's growth, and has provided significant advantages for consumers, domestic companies and the American worker. The paper clarifies the effect the deficit has had on American manufacturing jobs, and reveals that, although there may be a loss of jobs, the American economy has anyway become better educated and increasingly employed in service-based businesses.

Outline:
Roots and Overview
Benefits to Consumers
Overstated Effect on American Jobs

From the Paper:

"The current U.S. trade deficit stands at approximately $763.3 billion a year, and has grown considerably over the past decade, from a starting point of $108.3 billion in 1997 (Weisman, 2007). During that 10-year period, the trade deficit only failed to increase once --from 2000-2001. While America maintains a trade surplus with some nations, particularly many developing countries, its trade with other nations is so skewed that it has caused alarm among some policymakers and in the media. For example, from 1997-2007, America's trade deficit with China increased from $49.7 billion to $260 billion -- more than a five-fold increase (U.S. Census Bureau, 2007)."

Sample of Sources Used:

• Bajaj, V. (2006). "Consumers drive up U.S. trade deficit." International Herald Tribune, March. 10. Retrieved Jan. 20, 2008 from http://www.iht.com/articles/2006/03/09/business/usecon.php.
• Bivens, J. (2004). "Shifting blame for manufacturing job loss." Economic Policy Institute Web site. Retrieved Jan. 19, 2008 from http://www.epinet.org/content.cfm/briefingpapers_bp149.
• Griswold, D.T. (1998). "The causes and consequences of the U.S. trade deficit." The Cato Institute Web site. Retrieved Jan. 18, 2008 from http://www.cato.org/testimony/ct-dg061198.html.
• Johnson, B.T. (1995). "Trade deficit myths." The Heritage Foundation Web site. Retrieved Jan. 18, 2008 from http://www.heritage.org/Press/Commentary/ED080195a.cfm.
• "Made in China makes rich countries richer" (2005). China Daily, Aug. 21. Retrieved Jan. 20, 2008 from http://www.chinadaily.com.cn/english/doc/2005- 08/21/content_470833.htm.

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