Conyers Blasts Bush's Record Trade Deficits that Hurt U.S. Workers

Washington, DC - Congressman John Conyers responded today to February's record trade deficits, criticizing the economic destruction felt from the president's economic and trade policies.

"The surging U.S. trade deficit for February hit a record high of $58.5 billion, and it shows no signs of stopping as oil prices and textile imports rise dramatically. The Associated Press reported that, at this pace, the United States will run an annual trade deficit of more than $700 billion this year - yet another all-time high.

But this record-setting president doesn't seem alarmed. Instead, his administration is basking in the sunshine of this news, backed by questionable theories that record trade deficits are an encouraging sign of a bustling economy. Many level-headed economists, however, aren't so optimistic. Worries abound that America has become too dependent on the foreign financing needed to make up for these trade shortfalls and that the rising deficit will not only deteriorate economic growth this quarter, but also force the dollar to continue its three-year decline in value.

So, who exactly benefits from the president's reckless trade policy? Certainly not the American worker. The president's economic policies have devastated the manufacturing industry, which has lost more than 2.8 million jobs under his watch. For those workers who have managed to keep their jobs, their wages have been crunched by pressures from competition from India and China. Another factor is skyrocketing health care costs, which have put budgetary constraints on employers across the country. Increasingly, corporate threats of plant closings, job losses, and benefit reduction frequently force workers to agree to extensive pay freezes.

As a result, the average worker's wages adjusted for inflation actually dropped last year for the first time in a decade. The Employment Cost Index showed that real wages in 2004 dropped even though labor movement has been successful for decades in keeping most workers' wages rising to match the rate of inflation. As global competition increases, we continue to run high trade deficits. So there is no effective relief in sight for the American worker.

What we need most is a trade policy that recognizes that robust trade works hand in hand with full employment at home. Running the largest trade deficits in U.S. history might mean a 'bustling economy' to some, but for most of us, it means continued economic troubles ahead."

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