Trade Deficit In November of 2004, the linked States ran a liv billion dollar trade deficit, translating to over 600 billion for the unblemished year. This deficit is a result of the disparity between the follow of goods that the US imports and the amount it exports. To equalize this deficit in its electric current account, the American government sells assets from its capital account, often to foreign investors. This phenomenon is seen as a serious threat to the success and continued suppuration of the nations economy, tied in with popular concerns that the United States is losing its competitive and dominant edge in global economics.

The traditionalistic economic theory employed to solve this problem calls for a return to mercantile protectionism, through use of tariffs and subsidies to drive up the price of imports and lower the price of exports. Running contrary to this is a second option: increasing domestic savings and profound government spending. These theories both aim to decrease Ameri...If you want to gear up a full essay, order it on our website:
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