You won't believe how the U.S. trade deficit relates to unemployment!
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The U.S. merchandise trade deficit with China reached $365,649,000,000 in 2015. This outrageous number is the result of the United States purchasing goods at low prices and China hardly purchasing anything from America. The result is not only an extreme trade deficit, it also results in the loss of U.S. jobs.
LOS ANGELES, CA (Catholic Online) - When the economy begins to show signs of falling, companies scramble to pinch every penny. The most expensive part of any company is its payroll, so what do these corporations do? They outsource jobs.
By outsourcing jobs to countries such as India or China, there are less taxes and significantly smaller paychecks, but it also encourages a fall in the United States economy.
According to the Bureau of Economic Analysis, the annual value of U.S.-China trade rose nearly exponentially in the past thirty years.
In 1985, the deficit was only $6 million, but by 2005 it reached $202,2781 billion and finally came to rest at $365.6945 billion by December 2015.Federal Reserve Bank of St. Louis, in 2015 China spent 30 cents or less on U.S. goods for every dollar Americans spent on Chinese goods.
China continually purchases U.S. Treasury notes and is the largest lender to the United States Government, AboutNews explained. China does this to ensure Americans will continue to purchase Chinese-made goods and to keep the U.S. from another recession, which would keep American shoppers from wanting to purchase anything unnecessary - including Chinese exports.
Tim Geithner, 2009's U.S. Treasury Secretary, continued to engage in the U.S.-China Strategic Economic Dialogue to open U.S. companies to China's domestic market and raise the price of Chinese exports, but was unsuccessful.
Fortune reported several in Washington continue to search for resolutions, most of which focus on provisions against currency manipulation in the Trans-Pacific Partnership trade deal.
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