Summary
Two recent articles ought to give pause to current political and journalistic ignorance, perhaps demagoguery, about our international trade deficit. In a December Wall Street Journal article titled "Embrace the Deficit," Bear Stearns' chief economist, David Malpass, lays additional waste to predictions of gloom and doom associated with our trade deficit.
Since 2001, our economy has created 9.3 million new jobs, compared with 360,000 in Japan and 1.1 million in the euro zone - European Union countries that have adopted the euro - excluding Spain. Japan and euro zone countries had trade surpluses, and we had large and increasing trade deficits. Malpass says that both Spain and the United Kingdom, like the United States, ran trade deficits, but they created 3.6 and 1.3 million new jobs, respectively. Moreover, wages rose in the United States, Spain and the United Kingdom.See the full content of this document
Extract
Trade Deficit Makes U.S. No Less Prosperous
Professor Don Boudreaux, chairman of George Mason University's Economics Department, wrote "If Trade Surpluses Are So Great, the 1930s Should Have Been a Bo...
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