tag:blogger.com,1999:blog-2761684730989137546.post5321936293871897013..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: U.S. Trade Balancemike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-81802387582834198312009-08-03T23:02:51.272-04:002009-08-03T23:02:51.272-04:00Yes, this is an enormous shift and in my opinion d...Yes, this is an enormous shift and in my opinion doesn't only reflect a temporary U.S. drop in consumption. Unemployment in the U.S. is higher than in other industrialized nations and incomes have suffered more, relatively speaking. China is embarking on an ambitious program of economic reform that aims to even out income disparities and sustain domestic consumption, while Europe has a broader and more far-reaching social support system. U.S. policymakers view the world rife with "imbalances" that have to be corrected--the U.S. trade deficit being one. Moreover, it is believed that exports are a safe and reliable path for creating domestic jobs. This is the new paradigm and it shows quite clearly that America's trade deficit is in secular decline, which will lead to a long-term advance in the dollar.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.com