I have said before that the trade deficit is one of the major reasons for the currently slow U.S. economy. I have also said that it is one of the major causes of high unemployment, because the deflation caused by overseas competitors hurts our companies here at home. Here’s proof that I was right from today’s St. Petersburg Times, courtesy of AP:
The Bush administration is seeking to demonstrate that it has a plan to lift the fortunes of America’s manufacturing companies, which cut 2.7-million manufacturing jobs over the past three years in response to sluggish global demand and increased competition from imports.
I’m glad the White House is currently recognizing what I pointed out quite some time ago was one of the primary reasons for America’s slow economic growth.
Perhaps the president should appoint an Ambassador of Free Trade to hammer out free trade agreements with other nations favoring the U.S. Perhaps he should create a Department of Free Trade to show he is serious about creating free trade agreements with other nations that favor U.S. companies and stimulate the U.S. economy. Don’t be surprised if he, or some other candidate, takes this idea and runs with it, or on it, as the trade deficit will come to the forefront as an issue in the 2004 presidential election.