Reducing the Trade Deficit

Re “U.S. Is the Beast of Burden for World Trade Deficits,” Commentary, April 30: I agree with Sen. Jeff Bingaman that large, external trade deficits are harmful to the U.S. His proposed solution is far too narrow.

Even if all international trade barriers and anti-competitive business practices were eliminated (a goal which I support), large U.S. deficits will persist undiminished as long as this country continues to import more than $100 billion of foreign capital annually.

Why are we importing so much foreign capital? Because we need the money. Our national savings rate is very low by international standards and is inadequate to support the combined borrowing needs of government, business and families. If Bingaman and the rest of Congress are serious about reducing our trade deficit and reversing the export of American jobs, then they should prioritize their efforts toward reducing borrowing and encouraging individuals and businesses to save.

JIM FITZGERALD

La Jolla

* Bingaman is correct in his assertion that the U.S. must develop a credible plan to reverse our growing trade deficit. An adverse effect of a growing level of imports produced by cheap foreign labor is a reduction in the demand for American-made goods. This will, in effect, limit the opportunities for Americans to create and hold high-wage jobs, since reduced demand is naturally followed by decreased production, layoffs and plant closings.

Let’s start by leveling the playing field with Japan and putting a halt to the growing problems with China. Let’s abolish the fantasy that the invisible hand will make everything OK in the long run, and start taking actions now to prevent the future demise of hardworking Americans.

HEATHER KRAUSE

Irvine