us trade deficit lauren frischman, madison johnson, addison trump, garrett scott, and kenneth...
TRANSCRIPT
US Trade Deficit
Lauren Frischman, Madison Johnson, Addison Trump,
Garrett Scott, and Kenneth Claassen
What is a trade deficit? Occurs when a country imports more
than they export Leads to a negative balance of trade
History of the US Trade Deficit Post-World War II and into the 1960s
Period of prosperity Oil Shock of the 1970s
Inflation and stagnation Economy of the 1980s and 1990s
Rising deficit 1990s to today
Economic Effects Trade Partners
China Mexico Taiwan And more…(look at your shirt tag)
Lower production cost Ex: China in 2005
What does this cause? Productions move Loss of jobs
How Unemployment and Trade are Linked
What if? Multinational Businesses
Apple Wells Fargo
U.S. loses $1.2 million every minute Why does this matter?
Independency
U.S. Trade Deficit U.S. lead with 40% of the world
economic supply at one time but now that is shrunk to 20%
The countries that has the greatest trade surplus with the U.S are: China (data processing equipment,
textile, steel, iron, optical equipment) Japan (electrical goods, high tech
precision goods, autos, and robotics)
US Trade Surplus The US has a trade surplus with many nations
even though we are struggling with trade deficit. Major exports for the U.S. are; vehicles,
electronic systems, oil, gasoline, and food supplies.
Countries leading in deficits to the U.S. include: Hong Kong Australia Netherlands Belgium
2013 Statistics Ranked 17th in the education nationally. Ranked 23rd in infrastructure nationally. The U.S. continues to lead in
manufacturing, but other countries like China are quickly gaining ground.
The U.S. trade deficit is 41.8 billion dollars and growing.
Consume 19 billion barrels of oil a day, but only produce 8.5 billion barrels a day.
Should we buy only U.S. goods?
Pro National Security
Dependence on others
Protection Of US jobs Outsourcing
Trickle Down Effect More employees Quality of Products Taxes add to economy
Con Economic Right to Exist
Productive Add value to a company
Lack of Variety Expensive Goods Competition
Outsourcing Cheaper labor Cheaper goods
Environmental Means Oil production
• Had a similar trade deficit that got too much after just two years of over importing .
• Economy crashed , currency was undervalued over three times to stabilize. Inflation sky rocketed
• Same thing could happen to America but probably wont
• USA has much stronger economy with more fail safes and rules implemented by Fed
Mexican Crisis 0f 1982
Despite the fact that the economy looks
bad, it isn’t too terrible with an upward trend
emerging.
Is the trade deficit a problem?
Should we be buying only American made goods?
NO!