[Nachum]

I can think of some great ways to reduce the trade deficit! Let's slap some tariffs on those foreign goods, and cause a recession. I assure you that we will see the trade deficit shrink dramatically!

How about the trade arrangement we had before NAFTA? If we had done nothing, we would have lowered our trade deficit with Mexico and Canada by 87 billion.

[RWR8189]

What would the effect have been on domestic prices?

The greatest export of the Thid World is deflation.

[Southack]

"How about the trade arrangement we had before NAFTA? If we had done nothing, we would have lowered our trade deficit with Mexico and Canada by 87 billion." - Nachum

That's marginally possible (though keep in mind that we import quite a bit of oil from Mexico), but is it desirable?

Are trade deficits always a problem? Are trade deficits always the *biggest* economic problem?

Or do trade deficits merely make good boogeymen...easy to demagogue?