Friday, February 17, 2006


Trade and the "Deficit"

Here is an interesting article on the supposed trade deficit or "trade gap" and the counterbalance by Lawrence W. Reed of FEE. Why is it that this keeps coming up? It really doesn't mean anything of significance, yet there are numerous articles selling us this alarmism. Go figure?

Here is what I am talking about. It is an article from

Well, I would certainly agree that a lot of people worry about the trade deficit for a lot of the wrong reasons, but I think Reed's article ignores the more substantial arguments against America's growing trade deficit.

I think Larry Summers makes a pretty good case for why the US Current Account Deficit could lead to some problems.

Of course, there are also other good cases for why we shouldn't worry. And I am not declaring one way or the other, but I do think things are much more complicated than Reed makes them out to be.

As always good post. :)
In deed and here here.
Thanks DW

I forgot to add the link to the Summers article.
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