Record Trade Deficit

The week the Census Bureau reports that for the fifth consecutive year the United States ran a record trade deficit. The 2006 trade deficit reached a new high last year of $763,300,000,000 which is a 6.5% increase from 2005. Although the deficit is increasing, so too are exports. The Bush Administration argues that because exports are (also) increasing, the trade deficit is acceptable. Democrats in Congress are calling for opening more international markets for U.S. goods while protecting markets in the United States. French Prime Minister Chirac has called on the U.S. to stop subsidizing cotton growers so that African cotton growers can compete with U.S. companies. What do you think is the correct balance of trade protections and open international markets? What are the implications for the U.S. economy? Security? Industry and job?