The Trade Deficit!

Discussion in 'Economy' started by GHook93, Jul 17, 2009.

  1. GHook93
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    GHook93 Aristotle

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    Sillybobo brings up a huge point. We have a trade deficit and we need to start correcting it. However, Sillybobo, who is the equivalent to a Soviet Era Communist/Socialist, will call for protectionism, government spending and government regulation. What he doesn't take into account is America still to this day produces 21% of the world's goods ($1.7 trillion dollars) with China in a distant 2nd at 13%!

    http://articles.moneycentral.msn.co...e-myth-of-us-industrys-demise.aspx/?gt1=33002

    Therefore if we just go Sillybobo's route then we will be hurt 10 fold more than we would benefit! Nevertheless something have to be done!

    First things first, we should have put a guy at the head off our economy that knows something about the economy and how to make a company profitable. Rather than a community organizer who is used to government hand-outs. But that is moot now.

    So what can America do?
    (1) I would say reform the tax system so it doesn't reward shipping jobs overseas. I personally see the Fair Tax as the savior, but I will be realistic. At least start by lowering the corporate tax and give tax benefits for manufacturing parts state-side. And for god sake lower property taxes!
    (2) Subsidize certain manufacturing goods like steel, paper, auto parts etc.
    (3) Reform healthcare in some way to make it cheaper on business.
    (4) Reform regulations that hurt business and send them flying overseas.
    (5) Take power away from the Union, don't kill the unions, but stop them from making demands (like they did in the auto industry) that kill industries!
    (6) For god sake shrink government! Every state should be required to shrink their government before they get any federal aid. Large government require more burdens on the people and the corporations. These in effect put more burden on people (spend less) and business (create incentive to move overseas)!
    (7) Get rid of the payroll tax! I guarantee the payroll tax was created by a leftist. Great idea tax the business (esp small business more) for hiring more employees. Brillant!
    (8) For god sake get off of foreign oil. Importing foreign oil is a huge contributor to our deficit with 5 of the winners listed below (Canada, Saudia Arabia, Nigeria, Venezuela and YES Sillybobo Mexico). The electric car is the way. I like the Tesla, I like the GM Volt. I like Chysler, Toyota and Honda getting on board. The electric car is the future.
    (9) As Mitt and ALL of the Republican candidates in the primaries stated is we need to get serious about the trade wars China and Japan are fighting with us! I think it was Duncan Hunter that stated we needed to start using mirror trade tactics with these 2 countries!


    Below is our largest trade partners in 2006 and the deficits we face!

    America's Trade Buddies: Top Ten U.S. Export & Import Partners | Suite101.com
    Top 10 Countries for U.S. Exports (2005)
    Canada ... US$211.9 billion (up 31.7% from 2002)
    Mexico ... $120.4 billion (up 23.5%)
    Japan ... $55.5 billion (up 7.8%)
    China ... $41.9 billion (up 89.6%)
    United Kingdom ...$38.6 billion (up 16.3%)
    Germany ... $34.2 billion (up 28.6%)
    South Korea ... $27.8 billion (up 23%)
    Netherlands ... $26.5 billion (up 44.8%)
    France ... $22.4 billion (up 17.9%)
    Taiwan ... $22.1 billion (up 20.1%)
    The top 4 trade partners for American exports - Canada, Mexico, Japan and China - consumed over 47% of U.S. exports in 2005.

    Top 10 Countries U.S. Imports From (2005)

    Canada ... US$290.4 billion (up 38.9% from 2002)
    China ... $243.5 billion (up 94.5%)
    Mexico ... $170.1 billion (up 26.4%)
    Japan ... $138 billion (up 13.7%)
    Germany ...$84.8 billion (up 35.7%)
    United Kingdom ... $51 billion (up 25.3%)
    South Korea ... $43.8 billion (up 23%)
    Taiwan ... $34.8 billion (up 8.4%)
    Venezuela ... $34 billion (up 125.2%)
    France ... $33.8 billion (up 19.9%)
    Canada, China, Japan and Mexico supplied more than half of U.S. imports in 2005. Oil-producer Venezuela showed the highest percentage gain in its exports to the U.S. However, China's exports to the U.S. almost doubled since 2002, and account for a much higher share of world exports to the U.S. when compared to the smaller number for Venezuelan exports.

    And The Winners Are...
    The top 4 nations in the list below were responsible for some 54% of America's total deficit in 2005.

    Top 10 Countries Contributing to U.S. Trade Deficit (2005)

    China ... -$201.5 billion (up 95.4% from 2002)
    Japan ... -$82.5 billion (up 17.9%)
    Canada ... -$78.5 billion (up 62.9%)
    Germany ... -$50.6 billion (up 40.9%)
    Mexico ... -$49.7 billion (up 33.6%)
    Venezuela ... -$27.6 billion (up 157.9%)
    Malaysia ... -$23.2 billion (up 69.3%)
    Nigeria ... -$22.6 billion (up 361.2%)
    Saudi Arabia ... -$20.4 billion (up 142.9%)
    Italy ... -$19.5 billion (up 37.3%)


    Read more: America's Trade Buddies: Top Ten U.S. Export & Import Partners | Suite101.com
     
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  2. Shogun
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    I think it's funny as HELL that you fair tax people flop around like a chicken with a broken neck at the idea of tariffs on imports but you don't hesitate to throw a tariff on all goods and services consumed in the US in order to keep from paying an income tax. hilarious.


    Also, let's call a spade a spade.. you both cry about Sealy's socialist solutions.. and then MENTION THE VERY SAME SHIT IN #'s 2, 3 and 8!

    :rofl:

    Your discombobulated perspective cracks me up.
     
  3. GHook93
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    GHook93 Aristotle

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    LOL, I think its funny when people like you know nothing about what they talk about speak like arrogant communists!

    The Fair Tax gets slapped on all goods regardless of country of origin. This allows America to do away with the corporate, payroll, INCOME and capital gains tax! Not to mentions taxes on corporate purchases. No corporate, payroll and income taxes will give corporation GIGANTIC incentive to produce products state-side, which will be a huge US economic ammo against the 3rd world's main weapon - low wages! No capital gains taxes will produce more investment dollars!

    I know its hard for you as a Soviet Ear Communist/Socialist to comprehend, but I thought you didn't like to listen to Jews, so why to you still swear by Marxism! :eusa_pray:
     
  4. Shogun
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    Funnier still, that your sole retort is insisting that no one else knows what they are talking about!

    :rofl:

    Indeed, the fair tax gets slapped on all goods and services.. a TARIFF ON CONSUMPTION. Income taxes still get paid but all you will do is freeze up the very consumption that makes our consumer base so integral to domestic and global economics. No one will be out frollicking in the fucking department stores trying to buy an item marked up 15% just so you can save on corporate taxes. Sorry bud. Your fair tax scheme is just a pipe dream.

    We already have the ability to battle trade deficits and slave wages of third world nations: instead of imposing a tariff on AMERICAN CONSUMERS like you want we tariff foreign goods that come from nations who abuse the trade deficit. I'd rather take this battle to China, Mexico and India rather than AMERICAN CONSUMERS, thanks.



    But, hey.. if I've already sunk your weak ass position enough to make you cry antisemite this early in the game then it's pretty clear just how much your kind rely on martyrdom like a paraplegic does a wheelchair.



    ps, you didn't address how funny it is that you both cry about socialism and then SUGGEST regulated and gov influenced markets in #2... I guess you were too busy crying "i'm a jew so treat me special" to notice.
     
  5. Care4all
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    Care4all Warrior Princess Supporting Member

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    well, identifying what it is that we import from these countries is key to figuring out what to do about our trade deficit and nigeria provides 11% of our total oil imports, saudi arabia, canada, venzuela, and mexico provides us imported oil as well....

    and the EU countries that we have trade deficits with i would imagine is Defense contracts.

    Then there is China and japan and probably malaysia... where it really involves manufacturing retail goods.

    let's start with those segments of imports, to get to our solution to our problems with the trade deficit...
     
  6. Care4all
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    Care4all Warrior Princess Supporting Member

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    so basically, we need to get off of the foreign oil tit...this will be a huge dent in reducing our trade deficit and will also, create jobs here, if it is done wisely. (which of course I realize anything can be messed up, with little effort)

    Then we need to consider limiting our defense projects to usa businesses instead of overseas countries...the problem with doing such is that we do not have enough of our own companies to compete with for the best price and best practices for R & D advancement....but this could be because we opened the doors globally to be bidders in the first place...thus cutting the incentive for local u.s. competition?

    Addressing both of the above areas will bring good jobs to the USA and reduce our trade deficit.


    Then we are left with China...the big Kahuna!!!


    I have no idea how to address this problem?
     
  7. Oddball
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    Senator Smoot.....Congressman Hawley for you on line three!!!
     
  8. editec
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    editec Mr. Forgot-it-All

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    The deindustrialization of the USA is the root cause of most of our current economic woes.

    Not only have we encouraged (indeed forced some) industries to move off-shore, we gave them tax advantages to do so, too.

    We could have been a force for bringing the quality of life up for most of the world's workers with some judicious international trade policies.

    Instead we went for making a very very small group of industrialists superwealthy.

    So much for market forces leading toward the greater good as it regards this issue.
     
    Last edited: Jul 18, 2009
  9. GHook93
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    GHook93 Aristotle

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    Was that aimed at me? I think I specifically stated that protective Tariffs were not the way to go!
     
  10. GHook93
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    GHook93 Aristotle

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    I think whether your on the right or left we can all agree there is a serious problem, so no need to address that. Mostly the sides have different ways of combating it. So why don't you state some of your solutions!
     

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