Editor's Note: All this week in our special series "Broken Government," CNN is taking a hard look at our nation's government; the frustrating problems and the potential solutions. Today, our Carol Costello looks at the U.S. trade deficit and how we can compete with cheap foreign labor. And tomorrow on American Morning, we head to a small community surrounded by 14 chemical plants spewing cancer-causing waste. Why has it taken the government's environmental watchdog a decade to get involved?

(CNN) – Last year, the U.S. bought more from other countries than we sold. How much? More than $380 billion, according to the folks at the census.

So what's the fix? Some economic experts say we need to adjust free trade agreements. Our Carol Costello went to Baltimore, Maryland to find out why.

Editor's Note: All this week in our special series "Broken Government," CNN is taking a hard look at our nation's government; the frustrating problems and the potential solutions. Today, our Carol Costello looks at states trying to gamble their way out of the recession. And tomorrow on American Morning, President Obama says he wants to double U.S. exports in the next five years. So what's the plan and how can America even compete with cheap foreign labor?

By Bob Ruff and Carol Costello, CNN

Our cameras were rolling at The Rivers Casino in Pittsburgh as a contestant spun the “Wheel of Luck.” On this particular day the “Wheel” lived up to its name, coming to a rest on $5,000. A small crowd erupted in cheers and applause at the elderly man’s good fortune.

The owners of Pennsylvania’s newest casino are hoping that promotions like the “Wheel of Luck,” along with more than 3,000 slot, virtual roulette and Black Jack games, will entice big crowds and big bucks.

Someone else is hoping that the casino is a big winner: the state of Pennsylvania. Why?

Pennsylvania gets a cut – a very big cut – from every dollar spent in every one of the nine up-and-running casinos licensed by the state legislature. 34% of gaming revenues go directly to the state. Additional amounts go to municipalities, firefighters, and the horse racing industry.

Pennsylvania is not alone. In fact, there is a virtual stampede by states to authorize legalized gambling. 39 states either have or soon will have gaming available to one and all over the age of 21. And if you throw in lotteries, that leaves just two states without some form of legalized gambling: Hawaii and Utah.

Why are so many states betting on gambling? One word: recession.

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Editor's Note: All this week in our special series "Broken Government," CNN is taking a hard look at our nation's government; the frustrating problems and the potential solutions. Today, our Carol Costello reports on why banks still aren't loaning and what the answer is for small businesses. Tomorrow on American Morning, we focus on states that are trying to gamble their way out of the recession.

By Ronni Berke and Carol Costello

You're the owner of a small business that's more than breaking even during this recession. You have good credit and want to hire more people. Therefore, you qualify for a small business loan – right? Wrong.

Jimmie Hughes, who runs office supply business “Grand America” outside of Dallas, says although that description fits him perfectly, he's been turned down for a loan by six community banks.

"I could double the size of my company now if I wanted to, but what I need in order to do that is to have operating capital that I can use to stabilize the situation with my company so I can put some good people to work."

Hughes may be caught in the loan log jam now affecting many small businesses. According to the Treasury Department, the nation's 11 biggest banks cut their small business loan balance by more than $2.3 billion in December. In 2009, the Small Business Administration approved only $9.2 billion in 7(a) commercial bank loans, down from $12.7 billion in 2008.

To loosen up credit, President Obama has proposed moving $30 billion of funds repaid under the Troubled Asset Relief Program (TARP) to community banks to lend to small business owners. But community bankers like Edward Merritt of Boston's Mt. Washington Bank, say cash is not what they need.

"I'm not really looking for more money to lend," he says. "I'm looking for more qualified borrowers to lend to, and that is as big a problem as I see it today as it is the bank's willingness to lend money."

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