381:
bilateral trade deficits do indeed matter", he said. "Trade deficits not only matter when it comes to jobs and growth and national security, they matter a great deal", Navarro said. Many economists disagree with this claim, saying that the factors behind the trade balance can be complex — and that the trade deficit is far from the best economic metric for policymakers to target... In an interview Monday, Angus Deaton, who won the Nobel Prize for economics in 2015, called the administration's attitude on trade deficits "an old-fashioned mercantilist position". "If you stand on a platform, it makes you six inches taller", he said. "It's a ridiculous argument."
69:
352:
States enjoyed a stellar trade surplus during the Great
Depression in the 1930s, for example.) "He won't find economists — either on the left or the right — that believe trade deficits are this huge a problem", Chip Roh, a former assistant U.S. trade representative and trade lawyer, told Foreign Policy. "It doesn't make economic sense." "When economists hear, 'Our goal is reduce the trade deficit,' it baffles us", Gordon Hanson, a trade economist at the University of California, San Diego, told FP. "He's either using it as a cheap political ploy or there's a misconception — he doesn't understand how it operates."
136:
33:
148:
235:
206:
accompanying decades of the implementation of broad unconditional or unilateral U.S. free trade policies and formal trade agreements. The overall U.S. trade deficit widened 12.2 percent in 2022 to nearly $ 1 trillion as
Americans bought large volumes of foreign machinery, pharmaceuticals, industrial supplies and car parts, according to new data released by the Commerce Department.
221:
155:
The notion that bilateral trade deficits are bad in and of themselves is overwhelmingly rejected by trade experts and economists. Some economists note that the trade deficit increases when the U.S. economy grows and
Americans are able to buy the goods and services they want from abroad. But many also
351:
Navarro's comments drew skepticism from trade experts and economists across the political spectrum, who said that line of thinking on economics was flawed. Economists say trade deficits aren't an indication of good or bad economic times, but rather a function of savings and investments. (The United
126:
Over the long run, nations with trade surpluses tend also to have a savings surplus. The U.S. generally has developed lower savings rates than its trading partners, which have tended to have trade surpluses. Germany, France, Japan, and Canada have maintained higher savings rates than the U.S. over
205:
In 1985, the U.S. had just begun a growing trade deficit with China. During the 1990s, U.S. trade deficit became a more excessive long-run trade deficit, mostly with Asia. By 2012, the U.S. trade deficit, fiscal budget deficit, and federal debt increased to record or near record levels following
380:
At a conference Monday morning in
Washington, Peter Navarro, the director of Trump's National Trade Council, reiterated the administration's focus on the trade deficit. The Trump administration policy is one of "free and fair and truly reciprocal trade that begins and ends with the belief that
198:. On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the U.S. to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and
171:($ 9 trillion), high non-bank corporate debt ($ 9 trillion), high mortgage debt ($ 9 trillion), high financial institution debt ($ 12 trillion), high unfunded Medicare liability ($ 30 trillion), high unfunded Social Security liability ($ 12 trillion), high
163:
jobs such as those in retail and government when the economy recovered from recessions. Some economists contend that the U.S. is borrowing to fund consumption of imports while accumulating unsustainable amounts of debt.
333:
364:
467:
The vast majority of economists view it differently. In this mainstream view, trade deficits are not inherently good or bad. They can be either, depending on circumstances.
48:
of the United States moved into substantial deficit from the late 1990s, especially with China and other Asian countries. This has been accompanied by a relatively low
101:
514:
497:
Hira, Ron and Anil Hira with foreword by Lou Dobbs, (May 2005). "Outsourcing
America: What's Behind Our National Crisis and How We Can Reclaim American Jobs".
697:
159:
Wealth-producing sector jobs in the U.S. such as those in manufacturing and computer software have often been replaced by lower-paying wealth-consuming
546:
176:
140:
692:
36:
United States trade deficits from 1997 to 2021. Deficits are over 50 billion dollars as of 2021 with the countries shown. Data from the
248:
68:
53:
580:
195:
393:
312:
60:. Debate continues over the causes and impacts of this trade deficit, and the nature of any measures required in response.
143:(NIIP) has caused concern among economists over the effects of outsourcing and high U.S. trade deficits over the long-run.
511:
89:
37:
209:
The US last had a trade surplus in 1975. However, recessions may cause short-run anomalies to rising trade deficits.
338:
253:
168:
365:"Analysis: Trump rails against trade deficit, but economists say there's no easy way for him to make it go away"
156:
worry that a persistent trade deficit could lead to lower employment and economic growth in the United States.
85:
645:
480:
443:
593:
Bailey, David and
Soyoung Kim (June 26, 2009). "GE's Immelt says U.S. economy needs industrial renewal".
194:
and unfunded liabilities were mentioned as a serious problem facing the United States in the
President's
607:
240:
113:
105:
92:
of 1922. Harding's policies reduced taxes and protected U.S. business and agriculture. Following the
566:
184:
135:
287:
619:
542:
451:
199:
117:
32:
226:
147:
93:
45:
592:
539:
Bad Money: Reckless
Finance, Failed Politics, and the Global Crisis of American Capitalism
518:
316:
663:
76:
The 1920s marked a decade of economic growth in the United States following a classical
620:"FTD – Statistics – Country Data – U.S. Trade Balance with World (Seasonally Adjusted)"
180:
160:
81:
108:
currency agreement followed by the economy of the 1950s and 1960s. In 1971, President
686:
172:
120:
109:
49:
418:
97:
309:
175:(amount owed to foreign lenders) and a serious deterioration in the United States
17:
77:
216:
191:
455:
220:
276:
151:
U.S. trade deficit (in billions, goods and services) by country in 2017
501:. Citing Paul Craig Roberts, Paul Samuelson, and Lou Dobbs, pp. 36–38.
608:
https://www.census.gov/foreign-trade/statistics/historical/gands.txt
146:
134:
67:
31:
57:
646:"America's Trade Deficit Surged in 2022, Nearing $ 1 Trillion"
481:"America's Trade Deficit Surged in 2022, Nearing $ 1 Trillion"
394:"Trump warns of trade deficits. Economists say, who cares?"
167:
In 2006, the primary economic concerns focused on: high
510:
David
Friedman, New America Foundation (June 15, 2002).
271:
Joseph A. Schumpeter, "The Decade of the
Twenties",
565:Cauchon, Dennis; Waggoner, John (October 3, 2004).
334:"Economists Take Aim at Trump Trade Theory — Again"
72:U.S. Trade Balance (1895–2015) and Trade Policies
102:United Nations Monetary and Financial Conference
8:
664:"American Spaces – Connecting YOU with U.S."
532:
530:
419:"www.igmchicago.org/surveys/trade-balances"
560:
558:
499:(AMACOM) American Management Association
304:
302:
300:
190:These issues have raised concerns among
264:
275:vol. 36, No. 2, (May, 1946), pp. 1–10
567:"The Looming National Benefit Crisis"
308:Bivens, L. Josh (December 14, 2004).
177:net international investment position
141:net international investment position
7:
698:Foreign trade of the United States
249:Foreign trade of the United States
25:
512:No Light at the End of the Tunnel
332:Gramer, Robbie (March 6, 2017).
233:
219:
196:2006 State of the Union address
583:. Retrieved on April 17, 2009.
1:
597:. Retrieved on June 28, 2009.
444:"What Is the Trade Deficit?"
322:. Retrieved on July 8, 2007.
27:Aspect of U.S. foreign trade
179:(NIIP) (−24% of GDP), high
714:
693:United States trade policy
517:December 19, 2007, at the
398:Public Radio International
315:December 17, 2004, at the
288:The shift away from thrift
116:, leaving the U.S. with a
320:Economic Policy Institute
254:United States foreign aid
537:Phillips, Kevin (2007).
273:American Economic Review
86:Emergency Tariff of 1921
90:Fordney–McCumber Tariff
80:policy. U.S. President
579:George W. Bush (2006)
152:
144:
73:
41:
644:Swanson, Ana (2023).
479:Swanson, Ana (2023).
150:
138:
71:
35:
241:United States portal
310:Debt and the dollar
185:illegal immigration
139:Deteriorating U.S.
112:ended U.S. ties to
52:and high levels of
650:The New York Times
581:State of the Union
485:The New York Times
448:The New York Times
423:www.igmchicago.org
153:
145:
74:
42:
18:U.S. trade deficit
652:. New York Times.
548:978-0-14-314328-4
522:Los Angeles Times
487:. New York Times.
202:to drive demand.
200:consumer spending
16:(Redirected from
705:
678:
677:
675:
673:
660:
654:
653:
641:
635:
634:
632:
630:
616:
610:
605:
599:
590:
584:
577:
571:
570:
562:
553:
552:
534:
525:
508:
502:
495:
489:
488:
476:
470:
469:
464:
462:
450:. June 9, 2018.
440:
434:
433:
431:
429:
415:
409:
408:
406:
404:
390:
384:
383:
377:
375:
361:
355:
354:
348:
346:
329:
323:
306:
295:
294:, April 7, 2005.
285:
279:
269:
243:
238:
237:
236:
229:
227:Economics portal
224:
223:
183:, and a rise in
94:Great Depression
46:balance of trade
38:US Census Bureau
21:
713:
712:
708:
707:
706:
704:
703:
702:
683:
682:
681:
671:
669:
662:
661:
657:
643:
642:
638:
628:
626:
618:
617:
613:
606:
602:
591:
587:
578:
574:
564:
563:
556:
549:
536:
535:
528:
519:Wayback Machine
509:
505:
496:
492:
478:
477:
473:
460:
458:
442:
441:
437:
427:
425:
417:
416:
412:
402:
400:
392:
391:
387:
373:
371:
369:Washington Post
363:
362:
358:
344:
342:
331:
330:
326:
317:Wayback Machine
307:
298:
286:
282:
270:
266:
262:
239:
234:
232:
225:
218:
215:
133:
66:
28:
23:
22:
15:
12:
11:
5:
711:
709:
701:
700:
695:
685:
684:
680:
679:
655:
636:
611:
600:
585:
572:
554:
547:
526:
503:
490:
471:
435:
410:
385:
356:
339:Foreign Policy
324:
296:
280:
263:
261:
258:
257:
256:
251:
245:
244:
230:
214:
211:
181:trade deficits
161:service sector
132:
129:
127:the long run.
82:Warren Harding
65:
62:
58:corporate debt
26:
24:
14:
13:
10:
9:
6:
4:
3:
2:
710:
699:
696:
694:
691:
690:
688:
668:
665:
659:
656:
651:
647:
640:
637:
625:
621:
615:
612:
609:
604:
601:
598:
596:
589:
586:
582:
576:
573:
568:
561:
559:
555:
550:
544:
540:
533:
531:
527:
523:
520:
516:
513:
507:
504:
500:
494:
491:
486:
482:
475:
472:
468:
457:
453:
449:
445:
439:
436:
424:
420:
414:
411:
399:
395:
389:
386:
382:
370:
366:
360:
357:
353:
341:
340:
335:
328:
325:
321:
318:
314:
311:
305:
303:
301:
297:
293:
292:The Economist
289:
284:
281:
278:
274:
268:
265:
259:
255:
252:
250:
247:
246:
242:
231:
228:
222:
217:
212:
210:
207:
203:
201:
197:
193:
188:
186:
182:
178:
174:
173:external debt
170:
169:national debt
165:
162:
157:
149:
142:
137:
130:
128:
124:
122:
119:
115:
114:Bretton Woods
111:
110:Richard Nixon
107:
106:Bretton Woods
103:
99:
95:
91:
87:
83:
79:
70:
63:
61:
59:
55:
51:
50:savings ratio
47:
39:
34:
30:
19:
670:. Retrieved
666:
658:
649:
639:
627:. Retrieved
623:
614:
603:
594:
588:
575:
569:. USA Today.
538:
521:
506:
498:
493:
484:
474:
466:
459:. Retrieved
447:
438:
426:. Retrieved
422:
413:
401:. Retrieved
397:
388:
379:
372:. Retrieved
368:
359:
350:
343:. Retrieved
337:
327:
319:
291:
283:
272:
267:
208:
204:
189:
166:
158:
154:
125:
104:brought the
98:World War II
75:
43:
29:
672:October 17,
629:October 17,
595:UK Guardian
541:. Penguin.
428:October 27,
403:October 17,
84:signed the
78:supply side
687:Categories
667:USInfo.org
624:Census.gov
260:References
192:economists
123:currency.
54:government
456:0362-4331
374:March 12,
345:March 12,
515:Archived
461:June 10,
313:Archived
277:in JSTOR
213:See also
118:floating
88:and the
131:Impacts
64:History
545:
454:
100:, the
674:2017
631:2017
543:ISBN
463:2018
452:ISSN
430:2017
405:2017
376:2017
347:2017
121:fiat
96:and
56:and
44:The
689::
648:.
622:.
557:^
529:^
483:.
465:.
446:.
421:.
396:.
378:.
367:.
349:.
336:.
299:^
187:.
676:.
633:.
551:.
524:.
432:.
407:.
290:.
40:.
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
