The Trade Deficit’s Cost to The American Economy – One Million Jobs Every Month
March 21st, 2008
We are importing $60 billion a month more than we export.
All of that $60 billion cash is either sent abroad or loaned back to us. Part of the reason for the recent economic troubles is foreigners are naturally getting more concerned about loaning more of our money back to us.
As a business person and MBA the question of how to quantify the trade deficit has always been a challenging idea to measure. No thinking person could believe it has no effect. The truth to that person laid off or losing their home is very evident. Without good jobs the economy simple does not run. Without cash no company or government can operate, the same is true for any household. The truth is that simple.
How many jobs go with each month’s $60 billion cash? If that money were instead kept in the U.S. economy through purchasing products actually made here? That amount is the equivalent to over 1 million jobs total compensation for an entire year. That is a direct result of the cash drain, not even including the secondary effects from folk’s reduced spending, like the many recent business defaults and layoffs.
Therefore, the cost to the American economy of the trade deficit is over one million jobs per month. The cost of the sorry and anguish caused by our economy decaying is not measurable, but clearly massive.
What can we do? Buying products made in the USA is the best medicine.
Friday, March 21st, 2008 at 4:57 pmand is filed under Uncategorized.
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This is great info to know.