How the U.S. trade gaps hurts the economy CBS News • May 11, 2012

How does offshoring relate to America’s growing trade deficit? Both stifle job-creation, which in turn is affected by U.S. trade policy. Since 2001, for example, the U.S. trade gap with China has resulted in a loss of 2.8 million jobs, according to the Economic Policy Institute, a Washington think-tank. More broadly, a widening deficit can act as a drag on the economy by muting the job-creating effects of consumer spending. Why? Because when people hit their local mall or big-box retailer, what they buy is mostly made abroad.