You are getting wrapped up in the trade deficit numbers and assuming that because we import a lot we are not producing anything. This is not the case, we simply consume our own manufacturing output ourselves and then some.
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I haven't looked at Senator Paul's proposed cuts yet, but I'm interested (as $500B strikes me as a serious number, rather than blather about cutting foreign aid, "waste and abuse" and other things that add up to pocket change). I expect to find that he's taken an axe to programs liberals like and largely spared those that conservatives/libertarians (not that those are the same thing, especially on budgetary issues) like (read: military, agri subsidies). I will be pleasantly surprised if this is not the case (or at least overly so).
-Arrian
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