It is almost as if the U.S. government encourages businesses
to outsource. We have free trade agreements with many other
countries. We have next to zero tariffs or competitive taxes and
we are the only developed country in the world that doesn`t
implement a consumption tax to increase the price of imports
and make exports inexpensive. If the government wants to get
rid of the deficit, one important thing it would have to do
would be to try to discourage offshore outsourcing. It will have
to reorganize trade policies and start taxing imports. It will
need to make it easier for the United States to compete with
the rest of the world. It will need to make it rewarding for
businesses to start manufacturing locally again (Moreland
2013).
American politicians have long favored increased free trade
in attempts to be more open to the world. B ut, if their goals are
to reduce the national debt, they should be doing away with
some of the free trade, therefore encouraging businesses to
manufacture locally. In order to reduce the deficit, they should
forget about internal spending and, instead focus on it at its
main source (Ensinger 2011).
Not only is offshore outsourcing responsible for a large
percent of our national deficit, but it is also causing this