Since ’54
And facts on drop trade...
So Blue
Economists argue until blue in the face about the implications of large U.S. trade imbalances with the rest of the world. Critics of such imbalances note that as we obtain goods from the world we pay for them with dollars, which many other countries then send back to the U.S. to buy stocks, bonds, real estate, etc. These critics suggest that as Americans, we buy more foreign-made cars and TVs, assets that lose value over time. Other nations, on the other hand, obtain greater ownership of more critical U.S. assets.
The only thing that a room full of economists (heaven help us) will largely agree on is that promoting barriers against trade between nations is bad policy. Building bridges to trade is good policy. We will disagree on everything else.
Published January 22, 2009
Jeff Thredgold, CSP
President, Thredgold Economic Associates
Republished with permission from Thredgold Economic Associates. Original article published on January 21, 2009, in Tea Leaf, a guide to understanding today's economy and financial markets.
Jeff Thredgold is president of Thredgold Economic Associates, an economic consulting and professional speaking firm based in Salt Lake City, Utah. He is an economist for Vectra Bank Colorado and the only economist in the world to have received the designation of Certified Speaking Professional (CSP).
