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

Period of prosperity
 Oil

Shock of the 1970s
Inflation and stagnation
 Economy

War II and into the 1960s
of the 1980s and 1990s
Rising deficit
 1990s
to today
Economic Effects

Trade Partners





Lower production cost


China
Mexico
Taiwan
And more…(look at your shirt tag)
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





More employees
Quality of Products
Taxes add to
economy
Economic Right to Exist



Outsourcing
Trickle Down Effect


Dependence on
others
Protection Of US jobs

Con
Lack of Variety



Expensive Goods
Competition
Outsourcing



Productive
Add value to a
company
Cheaper labor
Cheaper goods
Environmental Means

Oil production
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
Is the trade deficit a problem?
Should we be buying only
American made goods?
NO!