Baker showing some scientific objectivity here... he's risking getting thrown out of Club Lefty for exhibiting a lack of hypocrisy violation.
(We've been making these same points here since last year...)
Currently we are running an annual trade deficit of around $540 billion (@3 percent of GDP). This could be offset by spending more on education, infrastructure, clean technology or other areas, but the Very Serious People will not let us run larger budget deficits. In that context, it is quite reasonable to link a trade deficit to higher unemployment, so Trump in not wrong in that respect.
having the dollar as a reserve currency does not doom the United States to running large trade deficits. The problem is inept management of the international financial system.
In an era of secular stagnation Donald Trump is right to equate a trade deficit with lost jobs, it means less demand https://t.co/TKTUK5UOdp— Dean Baker (@DeanBaker13) March 27, 2016