us trade deficit lauren frischman, madison johnson, addison trump, garrett scott, and kenneth...

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!