30-Year Trade Deficit with Mexico

Natural Born Conservative ^ | September 19, 2015 | Larry Walker II

[NaturalBornConservative]

Trump Nails It

- By: Larry Walker II -

Last year our trade deficit with Mexico totaled $53.8 billion, and is projected to end about the same in 2015. When the last three decades are summed, we find that the United States 30-year trade deficit with Mexico amounts to $910.2 billion. Although this has been great for Mexico, it hasn’t been so great for the United States.

Looking back over the last 30 years, we find that the United States actually ran trade surpluses with Mexico in 1991 through 1994, and then came the North Atlantic Free Trade Agreement (NAFTA - 1994). Since NAFTA, the United States annual trade deficits with Mexico have totaled $897.8 billion (since 1995). By comparison, the deficit amounted to just $13.7 billion during the 9 years preceding NAFTA.

U.S. Trade Deficit with Mexico (1985 to 2015)

2015 $31.2 billion (through July)

2014 $53.8 billion

2013 $54.5 billion

2012 $61.7 billion

2011 $64.6 billion

2010 $66.3 billion

2009 $47.8 billion

2008 $64.7 billion

2007 $74.8 billion

2006 $64.5 billion

2005 $49.9 billion

2004 $45.2 billion

2003 $40.6 billion

2002 $37.1 billion

2001 $30.0 billion

2000 $24.6 billion

1999 $22.8 billion

1998 $15.9 billion

1997 $14.5 billion

1996 $17.5 billion

1995 $15.8 billion

1994 ($1.3) billion (surplus)

1993 ($1.6) billion (surplus)

1992 ($5.4) billion (surplus)

1991 ($2.1) billion (surplus)

1990 $1.9 billion

1989 $2.2 billion

1988 $2.6 billion

1987 $5.7 billion

1986 $4.9 billion

1985 $5.5 billion

Not only are we losing in trade with Mexico, but the Mexican government has allowed millions of its own citizens, and those from nations to its south, to pour over our southern border illegally. That’s right! The Mexican government has been mostly complicit, looking the other way while tens of thousands boarded trains from its southernmost to its northernmost border, allowing them to cross our border without any resistance. Although lately Mexico claims to be clamping down on illegal border crossings, the damage has already been done.

There are folks both left and right who say, “Free-trade is good for America, because it allows us to work less and buy cheaper goods.” Although plausible on paper, the theory fails once we tally the last thirty years results. Looking back over the last 30 years, we discover that not only has the U.S. lost nearly $5.0 trillion in national wealth ($4 trillion to China and $1 trillion to Mexico alone), but according to the Bureau of Labor Statistics, manufacturing jobs in the U.S. have declined from 18.0 million in 1985 to just 12.3 million as of August 2015.

According to Raymond Richman (Ph.D. in Economics from the University of Chicago and Professor Emeritus of Public and International Affairs at the University of Pittsburgh), “We should end our huge chronic trade deficits which have decimated our manufacturing sector and caused the loss of millions of good American manufacturing jobs. Our policy should be balanced trade which economic theory supports rather than free trade which is supported by economic theory only when countries have a common currency and free movement of capital and labor (as among the States of the United States). We should use the “Scaled Tariff” (our invention!), a single-country-variable-tariff that rises as trade deficits widen significantly, whatever the reason, and are reduced to zero as trade is brought into balance.”

Once aware that our flawed trade policy has resulted in the siphoning away of more than $5 trillion in national wealth ($1 trillion to Mexico alone) and 6 million manufacturing jobs, it should be easy to understand how Mexico will pay for the new border wall. Mr. Trump has his finger on two of the most glaring problems with our economy, illegal immigration and our Lose-Lose foreign trade policy. Balancing our trade deficit, by any means necessary, is a vital component in the quest to make America great again.

References:

An Economic Program for Stimulating U.S. Economic Growth

30-Year Trade Deficit with China - Maybe Trump Gets It

U.S. Census Bureau – Trade in Goods with Mexico

Bureau of Labor Statistics – CES Establishment Data - Manufacturing

U.S. Census Bureau – Income and Poverty in the United States: 2013

[thackney]

It will be way down in 2015.

About half the trade dollars last year was oil. Over 300 million barrels and average price of $85.

More in past years.

[HartleyMBaldwin]

I might take this guy a little more seriously if he knew what “NAFTA” stands for. (Hint: it isn’t North Atlantic anything.)

[NaturalBornConservative]

My bad. That should read the “North American Free Trade Agreement”.

[Sacajaweau]

It’ll be a nice wall....a great wall...and it will say....Trump This!

[1rudeboy]

Can’t have people spending their money and buying stuff. We need to raise taxes to bring something into “balance.” Whatever it is.

[Darth Reardon]

“the U.S. lost nearly $5.0 trillion in national wealth ($4 trillion to China and $1 trillion to Mexico alone)”

No, we haven’t lost WEALTH. We have their STUFF, they have our little green pieces of paper which grow less valuable over time. Eventually, those green papers will come back to us in return for some of our stuff (which, unfortunately, we’ve decided instead of creating as much stuff as we can we’ll just borrow money and pay people not to make stuff).

[HartleyMBaldwin]

OK. Good article in any case.

[1rudeboy]

My employer pays me to work. I earn money and I buy stuff with it. Can you imagine how much wealth I’ve lost over the years?

[Liz]

.....the Mexican government has "allowed" millions of its own citizens, and prolly gets a huge fee for allowing its birder to serve as the gathering place for those from 145 nations, to pour over our southern border illegally. The Mexican government "looks" the other way while tens of thousands ride trains from its southernmost to its northernmost border, allowing them to cross our border without any resistance.

More below.

[spintreebob]

NAFTA is not the most important event that happened in Clinton’s first term. Treas Sec Rubin destroyed the Mexican peson (for their own good). This caused a shift in maquiladora growth from Mexico to Asia. That domino then left many Mexicans with no job in Mexico and no desire to leave their factory town and return to their backwards hometown. So the next domino was a massive economic migration from Mexico to the US as a direct result of the meddling of Treas Sec Rubin in Mexico’s internal

[Liz]

THE MYTH.....the Mexican government has “allowed” millions of its own citizens, and prolly gets a huge fee for allowing its border to serve as the gathering place for those from 145 nations, to pour over our southern border illegally. The Mexican government “looks” the other way while tens of thousands ride trains from its southernmost to its northernmost border, allowing them to cross our border without any resistance.

REALITY CHECK Mexicans sucking off our welfare system are under the jurisdiction of the Mexican govt.

A sworn affidavit by Mexico’s consul general to a Texas court declares that “Mexico is responsible to protect its nationals wherever they may be residing.”

The Document also admits that Mexico’s official policy is to encourage its poor people to migrate here illegally in order to access the US’s generous welfare system......

This explosive document filed in Texas by the government of Mexico adds fuel to the debate touched off by Donald Trump.....

THE MONEY QUOTE A footnote states that “Mexican nationality is granted to children born abroad of a Mexican born parent.” IOW, anchor babies born in the US retain their parents’ Mexican nationality.

A sworn affidavit by Mexico’s consul general admits that Mexico’s official policy is to encourage its poor people to migrate here illegally in order to access the US’s generous welfare system......declaring that “Mexico is responsible to protect its nationals wherever they may be residing,”

The Mexican consul’s sworn testimony asserts that “My responsibilities in this position include protecting the rights and promoting the interests of my fellow Mexican nationals” and “The main responsibility of consulates is to provide services, assistance, and protection to nationals abroad.”

Ergo, Mexico’s assertion of continuing jurisdiction over its “nationals abroad,” is inconsistent with any claim to automatic US citizenship merely by reason of birth on US soil.

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MEXICO IS SLOBBERING AT THE US PUBLIC TROUGH The “impoverished” Mexicans here send BILLIONS of US tax dollars collected under multiple identities BACK to Mexico. The federales are getting a huge cut of that. Prolly Mexico also gets a fee for letting other countries use their border as a gathering place to slither into the US.

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Trump accurately tells Americans oil-rich Mexcio is ripping us off royally......and is pocketing billions from deal after deal. This is in addition to millions in US foreign aid to “help” them w/ then the drug cartel problem.

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NOW GIMMEE THIS AGAIN Mexico’s official policy is to send their impoverished classes over the border to ride the US gravy train...but declares that “Mexico is responsible to protect its nationals wherever they may be residing.”

OK....comprende, amigo.

Now tally up the welfare bill and send it to Mexico.

[amihow]

Don’t worry. Atlantic is just a slip. Critic did not have a substantive objection to your post. Post was grest.

[Toddsterpatriot]

Not only are we losing in trade with Mexico,

When you trade with someone, what are you losing?

Do you have some specific examples of your personal losing trades?

[flaglady47]

As usual, Trump is right about Mexico playing us for suckers.

[Tau Food]

Yes, indeed, Mexico has been screwing the US and the world for years. That’s why they’re so wealthy. And, boy, do they know how to conceal wealth! I know a lot of people who still think that Mexico is a poor country.

[Toddsterpatriot]

Do you consider it a loss when you trade with someone?

Or is it only some of your trades that are losers?

Which trades?

[sergeantdave]

One of the promises of NAFTA was that it would lift the standard of living for Mexican citizens, so why are they pouring across the border looking for gringo welfare?

NAFTA was another lie by the money-grubbing free trader thieves.

[nascarnation]

I can tell you in the automotive component area, all the stuff that went from the US to Mexico in the 90s/early 2000 era subsequently went to the ChiComs because they substantially undercut on price.

I’ve been told (no longer working myself) that because of currency adjustments, Mexico is now competitive with them again.