It appears that the best news on the trade deficit is behind us as the U.S. economy slowly begins it upward march.
Why? Improving demand at homes likely means improving demand for goods overseas. The deficit fell sharply as imports of goods from overseas fell amid the slumping economy, while the steep drop in oil prices cut the nation’s bill for crude oil.
Consequently, the worst recession since the 1930s did produce what no amount of quotas and tariffs could ever hope to do: help the nation’s balance of payments. However, the country has paid a steep price.
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