Protect Our Economy

Illicit trade has real consequences for consumers

• Illicitly traded narcotics and opioids kill 10,000s of Americans each year, including 75,000 deaths per year attributed to fentanyl alone
• 1 in 4 alcohol bottles are illicit, representing 25.8% of all global consumption and posing potential health risks
• Retail crime results in $125.7 billion in lost economic activity and 658,375 fewer jobs, paying almost $39.3 billion in wages and benefits to workers
• Between 72,000 and 170,000 children die of pneumonia each year after taking counterfeit, ineffective antibiotics

Businesses and governments suffer the effects of illicit trade as well

• $1.6 trillion (or 2.7% of global GDP) is laundered annually and thus not properly taxed
• Fake, substandard, smuggled, and illegal foods cost the global food industry an estimated $30-50 billion per year
• Retail theft costs federal and state governments nearly $15 billion in personal and business tax revenues, not including the lost sales taxes
• Counterfeiting is responsible for 2.5 million jobs lost globally

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Importers pay tariffs but often pass the increased costs to consumers

• About 60% of vegetables in American stores come from Mexico, and 25% of crude oil processed in the U.S. comes from Canada. Tariffs on these products make them more expensive for American consumers. 
• Tariffs can make supply issues worse, leading to higher prices. 
• The 2025 tariffs have a larger impact on clothing than on other goods. Consumers face 15% higher shoe prices and 14% higher clothes prices in the short run.
• The Economic Policy Uncertainty Index has reached an all-time high, and businesses are hesitant to make investments in the U.S. because of the economic risk. 
• Countries often retaliate with tariffs of their own, making it harder for American companies to sell their goods and services abroad.  

Tariffs are a tool to achieve trade goals

• Trade experts agree that the negatives of tariffs often outweigh the positives, but the positives do exist.
• Tariff revenue as of April 2025 was $69 billion, higher than the $55 billion the Congressional Budget Office predicted.
• The threat of tariffs can be used in negotiations to achieve national interests. Tariffs against China are designed to protect national security by limiting steel and aluminum imports. 
• The Biden Administration previously used targeted tariffs to protect the growing domestic semiconductor industry.

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The COVID-19 pandemic exacerbated labor shortages across the economy.

• Many workers did not return to the workforce after the COVID-19 pandemic for a variety of reasons, including early retirements, difficulty arranging child care, and concerns for their health.
• A shortage occurs when the number of job openings is greater than the number of workers filling them. As of August 2023, there were 8.8 million openings compared to 6.3 million unemployed workers.
• The COVID-19 pandemic accelerated this trend, but the issue was always on the horizon. Workers are retiring faster than new workers are joining the workforce. This creates an unsustainable trend where essential services do not have the labor to successfully serve society.
• Recent bipartisan legislation such as the CHIPS and Science Act and the Bipartisan Infrastructure Law provided funding for infrastructure investment, but a shortage of skilled labor will delay the timeline and implementation of these projects.

Labor shortages are affecting almost every industry, passing costs to consumers.

• About 1.4 million manufacturing jobs were lost during the COVID-19 pandemic.
• The construction sector is hit one of the hardest, and the costs are pretty wide-ranging, making it more expensive to build literally anything.
• The labor shortage leads to fewer contributions for Social Security, affecting retirement plans for many Americans.
• Less workers on farms create increased food prices.
• Completion of construction projects, whether they are residential homes, infrastructure initiatives, or hospitals, is restricted by a lack of available labor.
• Shortages of public transportation employees affect anyone who commutes to work, school, to run errands, get to appointments, etc.
• Without the necessary amount of workers, healthcare systems will have an increasingly difficult time providing care to those who need it most.

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The U.S. has always had to deal with budgeting to avoid debt.

• Every year, the federal government earns and spends vast amounts of money. If the government spends more than it brings in, that creates a deficit. If the government operates in a deficit for years at a time, the deficits accumulate to form debt.
• The United States has carried debt since its creation, when the Founding Fathers funded the American Revolutionary War. Large increases in the debt occurred during wars, recessions, and pandemics.
• Increased spending provides for programs such as Social Security, Medicare and Medicaid, unemployment and disability benefits, and the national defense.
• Like any other type of debt, the national debt gathers interest, and as the debt grows, so does the amount of interest.

The national debt is an abstract concept that affects every American.

• Current and future generations will have to manage the debt.
• The national debt is over $33.55 trillion dollars, which is over $100,000 of debt per American.
• High deficits and debt can lead to persistent high inflation, raising costs on everyday goods and services.
• Rising interest rates affect the ability of hard working Americans to get loans or take out mortgages.
• As the interest on the debt rises, the government may have to make choices about which programs to fund, potentially reducing Social Security payments and other benefits.
• Taxes could increase to raise revenue and offset spending.
• Increased government borrowing could crowd out other types of investments in small businesses, infrastructure, and manufacturing.

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