The U.S. sacrifices about ten full time jobs for each million dollars of net imports of goods and services. Its billions of dollars in trade deficit is the primary reason behind its millions of job losses. Loss of jobs, in turn, decreases income, demand, investment, and tax revenues. Budget deficits enlarge and programs of public and social care are curtailed.
“Trade Equilibrium,” naturally, is the principal solution. In the short term it will put a stop on additional jobs exports. Over the years, it will also create net new jobs. There is no other long lasting practical way out of this mess (including the oft suggested ideas such as stimulus funds, dollar devaluation, yuan revaluation, education in math and sciences, and reduced interest rates) as long as the American consumers continue to buy more goods and services from foreign countries; and as long as the American corporations continue to transfer more production facilities abroad—which in turn continue to create the nation’s massive trade deficit
The author puts forward some thoughts and recommendations to move towards the state of Trade Equilibrium.
Bhandari, Narendra C., "Trade Equilibrium, Trade Deficits, and Jobs" (2010). Faculty Working Papers. Paper 69.