Trade Deficits Cost Jobs and Shrink GDP

[endicom]

American Greatness
Spencer P. Morrison
Sept. 26, 2018

The Trump Administration last week announced it would impose 10 percent tariffs on an additional $200 billion worth of Chinese goods—including many consumer goods that have been exempt until now. The rate would increase to 25 percent by year’s end. China responded by imposing new tariffs on $60 billion worth of American goods. Make no mistake: we are now in the midst of a tit-for-tat trade war.

Good.

It’s no secret that China has been, to quote President Trump, “ripping us off” for decades. Not only was our trade deficit with China $796 billion in 2017, our cumulative deficit since 1985 tops $5.2 trillion. Most of the imbalance occurred since 2001, when China joined the World Trade Organization.

Deficits aside, China is also a thief that steals some $400 billion worth of American intellectual property every year. This includes everything from trademarked corporate branding and copyrighted entertainment to precious military and industrial secrets. For example, China’s submersible fleet is the product of pilfered American technology, according to the written testimony of U.S. Navy Admiral Philip Davidson.

More... https://amgreatness.com/2018/09/26/trade-deficits-cost-jobs-and-shrink-gdp/

[To-Whose-Benefit?]

@Bigun
@Smokin Joe
@Cyber Liberty
@Fishrrman
@Absalom

"In fact, the Bureau of Economic Analysis estimates that each dollar of manufacturing output supports $1.48 in spinoff service output. Thus, one factory job supports roughly 1.5 other jobs. This multiplier effect is real, and not subject to Henry Hazlitt’s popular “broken windows fallacy” critique for the simple fact that factories don’t redistribute wealth, they generate it. Accounting for this means NAFTA likely costs America a net 1.7 million jobs."