The following article was written by Pat Choate in March 2005, but is even more relevant today. 

The open market policies advanced by the WTO and supported by a bipartisan majority in both Houses of the U.S. Congress have led to a rapid dismantling of the American economy. Since the mid-1990s, the U.S. has accumulated a trade deficit of more than $5 trillion, the largest unilateral transfer of wealth in history. Put into context, as recently as 1970, the United States manufactured here almost 95 percent of all that it consumed. Today, it produces less than half that portion.

At the same moment, the U.S. is shifting its manufacturing base abroad; it is also outsourcing its service jobs. Forrest Research estimates that American employers can profitably ship four out of ten U.S. jobs overseas electronically.

Today, America’s trade and budget deficits are so large they exceed the capacity, and willingness, of U.S. and foreign investors to provide the financing required. Consequently, most of the capital that now finances the U.S. trade and federal budget deficits comes from the central banks of four Asian Governments Japan, China, Taiwan and South Korea. They are also four of our major economic competitors.

Present U.S. trade policies are unsustainable. Unfortunately, our president and a majority in Congress do not understand the dangers created by the loss of the American manufacturing base nor do they realize how their policies are leading us to a financial calamity equal to the one that produced the Great Depression.

What is vital is that Americans understand that their country cannot be a superpower without its own manufacturing base. Nor can we maintain our standard of living or retain an assured national defense.

However, costly and however painful, this nation must eventually locate here the industries that produce most of the goods we need and consume, including those required for our defense. In sum, we must replace the ideology of free trade with the pragmatism of nation building.

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