2005 trade deficit hits record of $725.8B

Mainly due to a record high in importing crude oil, 2005 saw an overall record of a $725.8 billion gap between American imports and exports. The trend of an increasing trade defecit has drawn on for four consecutive years. With the trade deficit at an all-time high, one has to wonder if those in charge of foreign policies have noticed the trend at all. Economists are split over whether the gap will reach a trillion in the next few years but it seems dependent on who the next president will be. As long as we stay in the Middle East, our overseas relations will not be as great as we'd like them to be. But with recent talk of a free trade agreement with South Korea and the growth of other foreign countries, I can see how the decifit will eventually level off. However, Democrats argue that opening up free trade agreements will cause more Americans to lose their jobs, as 3 million have already suffered from unemployment since mid-2000.

I agree that the numbers are pretty alarming, but they are a little inflated due to the fact that we are importing abnormally large amounts of crude oil these days. The high price of the oil also has a significant affect on the numbers. But regardless, America needs to look more inward in regards to the economy and increase the amount of exports. I've only been in an economics class for a few weeks now and I know that there are significant gains from trade. So unless we are getting the full bang for our buck in having such a large trade deficit, something has got to give.