Ever since the trade treaties NAFTA and GATT were enacted in the mid-90s, the trade deficit has done nothing but grow.

One article notes “Most economists are extremely alarmed about the effect of the expanding deficit on the current account. In 2004 the deficit stood at $668 billion, or 5.7% of the gross domestic product (GDP). For 2005 we have estimated that the deficit was around $788 billion, or 6.3% of GDP… It is held that this increase in foreign debt cannot go on forever. If the Americans do not begin reducing their trade deficit, there will come a time when foreigners will become less willing to hold dollar denominated assets. This in turn will weaken the US dollar. Consequently, once this happens the United States will be forced to increase interest rates (maybe sharply) to continue to attract foreign investments. Higher interest rates in turn will plunge the economy into recession. In short, given the size of the current account deficit it is held that the US dollar has to plunge in a big way against most currencies, and it is not possible to avoid a painful adjustment as a result of this. It would appear that the trade deficit is a major economic problem that must be urgently addressed in order to avoid serious economic disaster.”

When NAFTA and GATT were being shoved down our throats, our politicians promised much lower prices for just about everything. They also claimed that the economy would be fine because the profits would stay here in the US. Years later prices were virtually unchanged for most consumer goods. The big corporations simply moved their factories offshore and pocketed the saving in labor cost. These companies spent millions to move their factories offshore. Are they really doing that just so they can pass the savings onto us consumers? Of course not, they did that to maximize their profits.

The claim that “the profits will stay in America” is bunk too. What corporation is going to base itself in the US after they’ve moved their factories out of the country? What company would needlessly subject itself to the endless taxes Congress likes to impose when they can move their corporate HQ to the Cayman Islands?        

NAFTA and GATT mean a huge drop in taxes collected from big corporations, not to mention millions of Americans being put out of work or shifted over to low-paying service industry jobs. The loss in taxes means that Congress will eventually raise the income taxes on us peasants. After all, we can’t move our income offshore.

The politicians and talk show hosts, who supported NAFTA and GATT, either knew or should have known that the result would be disastrous. Today we have ample proof of the negative effects. Every politician who supported NAFTA and GATT should be put on trial for treason. Unfortunately, most of the politicians who betrayed us in the ’90s are still in power selling us out to this day. The two-party system is an abomination that needs to be eliminated. A new third party desperately needs to be formed to replace the den of thieves in D. C. Unfortunately most people won’t do anything until a disaster does happen. A continuing HUGE trade deficit will ultimately undermine our currency and lead to a recession if not a depression. Perhaps then, Americans will wake up and begin taking the steps they should have taken, the year NAFTA and GATT were approved by Congress.