The Perils of Importing More than We Export

The United States continues to import more, and export less each year, while our production levels drop and we continue the sell off our large companies to foreign interests. As a result, tax revenue has receded and we now have fewer American owned companies remaining to produce wealth and generate taxes. Our government, already drowned in foreign debt, must continuously borrow more to operate and pay its bills.

This cycle of debt enlargement has impacted every level of our economy. Government debt is now more than $13 trillion. That represents an increase in debt of $4.12 billion per day. The 2007 balance of trade deficit (debt) was $731 billion, while China made a $371 billion profit during the same year. In 2009, the trade deficit was $375 billion, an improvement, but still completely unacceptable. Our current trade deficit for 2010 already quickly approaches $280 billion, and it increases at approximately a rate of $14 million per second. At this rate our trade deficit by the end of 2010 will be roughly $475 billion, an increase to the 2009 deficit by $100 billion.

The following figures represent the balance of trade deficits per year from 2001-2009. It is through these means that foreign interests buy us out.


2004 - $611 billion = $1,200,000 per minute


2005 - $711 billion = $1,400,000 per minute


2006 - $765 billion = $1,450,000 per minute

2007 - $702 billion = $1,350,000 per minute

2008 - $699 billion = $1,330,000 per minute

2009 - $375 billion = $713,500 per minute

It is prudent to note that the difference between imports and exports in 2009 and 2008 actually represents a mere 2 percent net increase in the ratio of exported goods to imported goods. In 2008, out of total exported and imported goods, imported goods made up 62 percent. In 2009, that figure dropped only to 60 percent. The reason for this is due to a drop in all economic activity, not because of a substantial increase in exports relative to imports.

No country can continue to exist on debt, especially when there is very little probability of ever repaying it. How can we continue to delude ourselves with the idea that we are a superpower? Our standard of living and economic strength is dependent on ever increasing imports and our entire economy can only be temporarily sustained by ever increasing debts. As we witnessed briefly in 2008, our bubble will burst, and when it happens again the crash of 2008 will appear to have occurred in a time of prosperity.

Our lenders will inevitably discontinue loaning us any more money. What motivation could they have to continue? Our productive capabilities have become uncompetitive and insufficient. Our manufacturing infrastructure and our source of a competent manufacturing labor force has been dissolved and replaced overseas. How will we possibly function when the money runs out? Something needs to be done, and it needs to be done soon. The process will be difficult, but the negative consequences of the alternative (continuing on our current path) pales in comparison.