AMERICA'S RECORD TRADE DEFICIT: A Reflection of Economic Strength.

From: USA Today (Magazine) | Date: May 1, 2001| Author: | Copyright information

AMERICA'S chronic trade deficit continues to set records, month after month, year after year, not only for its size, but for its share of an expanding gross domestic product (GDP). The large and growing gap between how much the U.S. imports and how much it exports continues to fuel anxiety among policymakers, economic commentators, and critics of American trade policy. However, those worries rest on a fundamental misunderstanding of the trade deficit's causes and consequences.

Although the U.S. has run a trade deficit every year since 1975, those deficits have reached an ...

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