Stop Worrying About the Trade Deficit
February 11, 2006
I’ve read several explanations of the trade deficit, but this is a particularly clear one. I believe it to be accurate.
TCS Daily - Stop Worrying About the Trade Deficit
This accounting convention creates the false impression that an excess of imports over exports — called a “trade deficit” — is an ominous imbalance requiring corrective action. In fact, America’s trade deficit is evidence, not of any imbalance, but of the happy fact that our economy is so strong and stable that foreigners invest here eagerly.
If there is anything “bad” about a trade deficit, it is that it is an indicator of consumerism, the excess of which may say something about our national character and priorities.
Dave, uneasy about his own contribution to the consumer culture.
Comments
Got something to say?
