Originally published February 26 2006
America reports a record-setting trade deficit
by Mike Adams, the Health Ranger, NaturalNews Editor
The national trade deficit has reached an all-time high at $725.8 billion.
The U.S. trade deficit soared to an all-time high of $725.8 billion in pushed upward by record imports of oil, food, cars and other consumer goods.
The deficit with China hit an all-time high as did America's deficits with Japan, Europe, OPEC, Canada, Mexico and South and Central America.
The Commerce Department reported Friday that the gap between what America sells abroad and what it imports rose to $725.8 billion last year, up by 17.5 percent from the previous record of $617.6 billion set in 2004.
It marked the fourth consecutive year that America's trade deficit has set a record as American consumers continued their seemingly insatiable demand for all things foreign from new cars to televisions and electronic goods.
The increased foreign competition has helped to keep the lid on prices in this country, but critics say the rising trade deficit is a major factor in the loss of nearly 3 million manufacturing jobs since mid- 2000 as U.S. companies moved production overseas to lower-waged nations.
Many economists believe those manufacturing jobs will never come back.
Bush, in an effort to counter the growing anxiety over America's ability to compete with such rising economic powers as China and India, unveiled a new American Competitiveness Agenda in his State of the Union address to double government spending on basic research, extend tax breaks for company spending on research and hire thousands of new math and science teachers for the nation's high schools.
Until it was surpassed by China in 2000, Japan was the country that had the largest trade gap each year with the United States.
The price of those imports rose to an all-time high, reflecting tight global supplies.
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