From The Heritage Foundation:

The Obama Administration, the Democratic Congress, and their friends in organized labor are quick to blame unemployment on the trade deficit. Facts don’t support that assessment. The historical record shows a *positive* correlation between aggregate trade deficits and job creation – a trade deficit signifies *more* jobs. That’s because trade deficits go up when prosperity is increasing and job growth is rapid. The dollars Americans spend for foreign goods and services are then recycled into the American economy in the form of foreign investment. When that investment goes into the private sector, it creates even more jobs.

The huge federal deficits threaten to derail this positive feedback loop. Why? Because the deficits are soaking up increasing amounts of foreign investment. If the capital inflows that are always and necessarily associated with the trade deficit are merely paying off the government’s obligations, there is nothing left over to create jobs.

If you want more jobs, stop Washington from gobbling up all the money and let the surplus of incoming capital do its work.

Related posts:

1. White House Confirms Continued Trillion-Dollar Budget Deficits
2. Obama Jobs Deficit Hits 8.3 Million, Another No-Jobs Bill Pending in Congress
3. ‘Obama is killing the economy’
4. President Obama & Union Leaders Continue To Advocate For Job-Killing Legislation
5. How Unemployment Taxes and Obama’s Stimulus Are Killing Jobs
6. Stimulus Is Destroying, Not Creating Jobs
7. NABE Economists on Stimulus: No Impact!
8. China warns Obama deficit spending must stop
9. Dealergate, social justice & the Obama job-killing machine
10. Jobless Rate Jumps To New High of 9.7 as More Jobs Lost