The Liberal Patriot

Hard Facts- One Choice

J.G. Schwam - August 8, 2004

The Bush administration has set many records, all ignominious. Travel to Europe and everyone asks the same question; “what’s the deal with this Bush guy”? Who could answer that question? The facts speak for themselves.

The economic standing of the USA in the world is at historical lows. If there is any doubt that the US economy is in a precarious position hard facts assuage all doubt. Between 2001 and 2003 investment of foreign capital in the USA has dropped from $144 billion to $72 billion. The result has moved the US from a net inflow of $40 billion in direct foreign capital investment in 2001 to a net investment deficit of $64 billion in 2003. This is a direct indication that foreign confidence in the US economy is waning.

The result of the massive outsourcing of manufacturing jobs, mostly to China is another record. Under the Bush administration the trade deficit with China has increased 20%, the highest foreign trade deficit of any country in the world. It now stands at $124 billion. It continues to climb each month as clothing manufacturers, food producers and others increase their purchases of domestically sold products from china. Inflation adjusted exports of American made products have declined under Bush, the first such decline under any American president since Hoover and the great depression and none other since the Civil War.

From 1989 through 2000 the US maintained a trade surplus in advanced technology products. In the last two years alone Bush’s economy has turned America’s former strong position in this area into a deficit rising from $17 billion to $27 billion in just one year, 2002 to 2003.

The 2004 Federal deficit is predicted to be another record $445 billion. Simplified this means the federal government is dependent principally on US Treasury note auctions principally to China and Japan to pay its bills. Separately the US trade deficit is now a record $490 billion. For first time in history the US is short of capital. This deficit, 5% of GDP is also a record. Forty percent of the US public debt is now held outside the USA.

China alone owns 30% of all outstanding US treasury debt. According to the Economic Policy Institute each manufacturing job lost to China or elsewhere costs 4.2 additional jobs throughout the economy. If you are not shocked yet seven Middle Eastern oil sheikdoms control 30% of US bank deposits and securities holdings. US oil imports add another $148 billion to the trade deficit.

Short sighted greed driven economic policies and virtually undocumentable runaway deficit spending that began under Reagan have sold the US out to our trade partners. Our nation is weaker than ever before. Seventy percent of the US economy is now based on domestic spending. Pushing down wages and eroding the buying power of the American consumer is economic suicide.

In a policy that defies logic the Bush administration has literally incentivized companies to move jobs overseas by giving them tax breaks to those do so. For the first time ever the US Armed Forces is buying and building aircraft and countless other products overseas. In another backslide the lack of investment in technology infrastructure during the Bush administration has moved the US to 11^th place in the world in access to broadband technology.

The only solution to ending the reign of the domination of the GOP by the destructive policies of cheap labor conservatives that see some terribly flawed wisdom in forcing the US economy to compete with the third world cost wise, by way of accelerating debt is to vote them out.

Until we substantially reduce debt, provide job and economic security for our workers, strengthen our industrial economy, the war on terror if sustained as envisioned under Bush will bankrupt our nation.

Just a few of the hard facts of the effects of GOP and Bush policies point to one choice. Vote Democrat for the House and Senate and Kerry-Edwards on November 2^nd or plan to move to India and start a call center or open defense contract machine shop in Spain.

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