Every year, the United States consumes more goods than it produces, resulting in a growing imbalance. This trend is not due to Santa Claus magically delivering extra items but is the result of increasing net imports, meaning what the country purchases from other nations exceeds what it sells to them.

Both White House candidates have neglected to address this issue but have made promises that, if fulfilled, would disrupt the import flow and lead to economic decline. The trade deficit reached $65.4 billion in 2023, akin to Amazon’s three-month sales, and even exceeded $78.7 billion in 2022, compared to a mere $3.2 billion in 1992.

The ability to consume more than produce is sustained by the nation’s dependency on accumulating government deficits and a low rate of private savings. Despite these hazardous trends, the U.S. can still sustain prosperity, although reliant on trading with other parts of the world for essential commodities like automobiles, electronics, and medications.

Imposing tariffs on foreign goods may not prompt a significant surge in domestic production, as the U.S. economy has largely shifted to service-focused industries. Both candidates, albeit with varying approaches, aim to curtail the trade imbalance by restricting imports, potentially leading to a reduction in consumption and economic hardships for the country.