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US Trade Deficit

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

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US Trade Deficit

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  1. US Trade Deficit Lauren Frischman, Madison Johnson, Addison Trump, Garrett Scott, and Kenneth Claassen

  2. What is a trade deficit? • Occurs when a country imports more than they export • Leads to a negative balance of trade

  3. 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

  4. 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

  5. How Unemployment and Trade are Linked

  6. What if? • Multinational Businesses • Apple • Wells Fargo • U.S. loses $1.2 million every minute • Why does this matter? • Independency

  7. 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)

  8. 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

  9. 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.

  10. Should we buy only U.S. goods? Pro 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 • National Security • Dependence on others • Protection Of US jobs • Outsourcing • Trickle Down Effect • More employees • Quality of Products • Taxes add to economy

  11. Mexican Crisis 0f 1982 • 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

  12. Despite the fact that the economy looks bad, it isn’t too terrible with an upward trend emerging.

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

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