Captain Rick: The U.S. Trade Deficit widened to $44.5 billion in June, significantly passing economist’s guess of $43.1 billion and 8.7 percent higher than a revised May deficit of $41 billion. This represents an annual rate of $534 billion. That means nearly a half trillion dollars earned by Americans each year are floating to places like China and Mexico to support their economy and GDP instead of America’s.
The U.S. trade deficit is caused by many reasons. One of the biggest reasons is because of poor trade deals like NAFTA, which send billions of dollars to Mexico each year to feed their economy, instead of adding to the U.S. economy. The last thing America needs is Obama’s TPP trade deal, which resembles NAFTA on steroids. Another big reason is because of U.S. labor unions, which push for higher wages and benefits for members, with the notorious outcome of forcing American companies to shut down manufacturing in the U.S. and move it to places like China and Mexico to reduce labor expense and increase profit.
Photo: U.S. President Obama and Xi Jinping, General Secretary of the Communist Party of China, President of the People’s Republic of China, and the Chairman of China’s Central Military Commission. Perhaps they are shaking hands on how well China is benefiting from current trade deals between the U.S. and China … at the expense of America.