"I estimate that immigrants and other foreign workers are bringing about $200 billion of human capital into the country annually. That substantially compensates for the large trade deficit. Numbers like these are raw and noncontextual. There are huge costs for any country facing mass immigration ~ especially if much of it is illegal. Business leaders may revel in the extra income, but many poorer areas face depressing social problems for people who are already on the edge. In a country like the UK which has 10 times the population density of the US, the problems are acute, particularly for the already disadvantaged. This was a big issue at last week's General Election.
From what I understand as a student of economics, having a trade deficit isn't necessarily a bad thing at all. It shows that there is an influx of capital. Looking at China, with its massive trade surlpus, it seems that a surplus means you're dependent upon external markets for your products. In that respect, having such a healthy and powerful economy that it actually needs to consume lots of foreign goods seems to be a good sign. Although trade deficit CAN become debt, it isn't inherently debt in and of itself.
I'd love to hear your response to this claim, if you're willing to engage it. I've heard a lot of mainstream press worried about the deficit, but most economists and independent bloggers don't seem to agree. The truth of the matter is sorely needed." economist Michael Mandel.