One final factor that plays an enormous role in the foreign policy of the United States is the country’s economic standing.
The United States government currently owns a $16.8 trillion national debt, a number that has been consistently on the rise over the past decade. Of that debt, $5.7 trillion is owned by investors outside the United States, including foreign governments.
This debt coincides with the United States’ negative balance of trade. The US currently has a trade deficit (annual) of $700 billion dollars, meaning that the country imports $700 billion more in resources from other countries than it produces as exports.
Combine these two things, the national debt and the trade deficit, and you will arrive at a frightening conclusion: the United States is not at all self-sufficient. This may not be surprising; many people realize that most of what we purchase in stores is produced elsewhere. However, it should be somewhat concerning.
It should be concerning because it means that in many ways, the US must answer to foreign countries. Perhaps the best example of this is the American reliance on Saudi oil. Oil is an incredibly important resource, yet the US imports 45% of the oil that it uses. 14% of that imported oil comes from Saudi Arabia, making it the second largest producer of US-consumed oil. Saudi Arabia has an incredibly patriarchal society, it is commonly ranked dead last in regards to women’s rights. In addition, 15 of the 9/11 terrorists were Saudi, the largest nationality among the hijackers. Many congressman who investigated the attacks went as far as to say that it seems the Saudi government may have helped plan the attack itself.
Yet, despite these terrible facts, Saudi Arabia remains a strong US trading partner and “ally,” even as less oppressive regimes in the region were being called part of the “axis of evil.” Why? Oil. Like Iraq, Saudi Arabia is a huge supplier of US oil. Unlike Iraq, it cannot be easily conquered. So the US is forced to maintain good relations with an oppressive and potentially terrorist government, lest they stop sending us their oil.
The other impact that the nation’s financial standing has on its foreign policy has to do with national defense. Because our national debt is so large, Admiral Mullen, former chairman of the Joint Chiefs of Staff, has called it the greatest threat to national security. That makes it a greater threat than Iran, or North Korea (though admittedly when the statement was made in 2010, NK wasn’t on the radar quite so much). Mullen argues that our national debt may prevent us from responding to an emergency (i.e. and invasion).
So all in all, it is important to recognize the impact of our economy on our foreign policy. The US has become a world leader in the past century largely because it has been an economic leader. As debt accumulates and the trade deficit grows, that title may very much begin to fade. Therefore, it is imperative that we ensure it does not do so.
