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 17 th in the education nationally.  Ranked 23 rd 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

Is the trade deficit a problem? Should we be buying only American made goods? NO!