US Shows Steady Growth in Trade Deficit
Today the Commerce Department reported that the US trade deficit reached the 2nd highest in history from April-June 2006. The deficit hit $218 billion and represents a 2.4% increase from the years first quarter. The only quarter in history to achieve a larger deficit was $223 billion from October-December 2005.
The US has had a trade deficit for 5 consecutive years and we are currently on pace to top last years deficit of $791 billion. Democrats argue that these figures represent a failure in the administration’s free trade policies. They also hold these policies responsible for the loss of 3 million manufacturing jobs since President Bush took office.
These deficits are critical because they contribute to the devaluation of the US Dollar. If the dollar continues to fall, it lowers the confidence for overseas investors to invest in US businesses.
The friendly folks at Wal-Mart import at least 60% of their goods from foreign suppliers, mostly China. This figure is from 2004 and surely must be higher now, the Chinese love making junky trinkets for us. Astonishly, Wal-Mart only imported 6% of it’s goods in 1996! No wonder that yellow smiley stays oh so happy!
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POSTED IN: George Bush, Politics
1 opinion for US Shows Steady Growth in Trade Deficit
Kaushick
Sep 19, 2006 at 3:03 am
Interesting website…keep up the good work.
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