In the US, the import and export gap is still a big issue, especially when combined with huge unemployment, slow progress, a foreclosure wave and mounting government debt.

Georgia lost a predictable 87,700 jobs and was the 10th worst hit state due to these crises. As per a study by the Economic Policy Institute, in the last decade Georgia lost 2.8 million jobs because of the trade deficit just with China.

Nationally, imports have outweighed exports for over three decades. Economists’ reason for the amount of harm the trade gap has caused to the US economy, which includes loss of US manufacturing jobs, little or no developments in the research sector and also unstable growth.

Last year Georgia exported more than $28.7 billion worth of US made products but also imported products valued at $60.2 billion according to the Department of Economic Development.

To solve this trade gap, economists came up with an idea to sustain and spur the economy called “multiplier effect” where each dollar spent kindles other spending. But if “leakage” happens, termed by economists as spending going overseas, it reduces the impact at home. Example, when consumers take tax cuts and buy televisions made in China or autos made in Germany, leakage takes place. However, if they buy products like this cup holder, which is made in the USA, leakage is minimal.

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