The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- The Commerce Department reported the deficit on international trade in goods and services was $45.6 billion in August. The trade gaps with China and on imported oil account for virtually the entire deficit, and the trade deficit is the most significant barrier to jobs creation and growth in the U.S. economy. Administration policies -- by failing to address the underlying structural causes of the trade imbalance -- slow economic recovery and risk thrusting the economy into second recession, raising unemployment above 15%. Economists agree, the recovery is weak and a second recession threatens, because the U.S. economy suffers from too little demand for what Americans make. Every dollar that goes abroad to purchase oil or Chinese consumer goods that does not return to purchase exports is lost purchasing power that could be creating jobs. Halving the nearly $550 billion annual trade deficit would create at least 5 million jobs.
Jobs CreationThe failure of both the Bush and Obama Administrations to address subsidized Chinese imports and develop abundant domestic oil and gas resources, are major barriers to pulling down unemployment to acceptable levels. The economy added only 103,000 jobs in September; whereas, 373,000 jobs must be added each month for the next 36 months to bring unemployment down to 6%. With federal and state government cutting payrolls, the private sector must add about 400,000 per month to accomplish this goal.
The China Currency Bill would slap duties on Chinese imports products subsidized by China's government-engineered undervalued currency, raise U.S. production and create jobs in America. If China stopped intervening in currency markets, the duties would stop. Similarly, if the Obama Administration and governors stopped blocking the production of domestic oil and gas, new jobs in construction and building materials industry -- such as cement and steel -- would open up quickly. The initiative would be better than government stimulus spending, because it would raise revenue rather than require Washington to tax and borrow.