How does it work?

The tool is designed to make hard trade deficit calculations easy to understand and see. You only need to type in three important numbers: the size of the trade deficit (for example, $500 billion), the job multiplier (the average number of jobs lost per billion, which is usually around 5,000), and the number of years to project (for example, 5 years). You can change values easily without typing because the interface has sliders for each input.

Key Takeaways

• You only need to input three numbers: deficit size, job multiplier, and years.
• The tool automatically assumes a 2% annual growth in deficit.
• It instantly shows the impact on jobs and GDP using dynamic visuals.
• Everything updates live—no manual calculations or buttons needed.

The Logic Behind

• The model assumes that the trade deficit goes up by 2% each year, which is a reasonable rate of growth used in economic forecasts. The tool figures out two main results for the last year of the projection:
• Jobs Lost: By multiplying the expected deficit by the number of jobs it will create.
• Effect on GDP: Using a factor of -0.1 shows that the deficit’s value has dropped by 10%, which is bad for the economy.
• Then, a color-coded doughnut chart shows the trade deficit and GDP loss next to each other. As you move the sliders, all of the numbers change automatically. The design also works well on mobile devices, stacking results for easier reading.

Example from the real world

For example, a factory worker wants to know how more imports might affect jobs in the area. Put in a $500 billion deficit, a 5,000-job multiplier, and a 5-year forecast. The result shows that by year five, there will be about 2.7 million fewer jobs and a $54 billion drop in GDP.

Using the $78 billion deficit from July 2025 shows policymakers how quickly trade gaps can hurt the economy. These numbers show how important it is for the government to make decisions like tariffs or export incentives that help the country grow.