Many people do not understand the huge power we have by importing other countries product and consume it. If we stop importing their products they will go into starvation.
The power of the consumer is the most important factor to have a strong economy, and the consumer is always right.
Hehehe look at france and what our boycott did.
COnsumer debt is at an all time high. Has been for the past few years. We have one of the lowest savings rate in the developed world.
And you are right too. The whole surrent account deficit argument is on its face specious.
What most econoid writers fail to understand is the CAD pales in significance to USA's intratrade.
As an example take any one of a number of US companies, say Walmart, who imports shiploads of seavans full of manufactured goods from Asia. What people don't realize is that the retail price vs. cost of product is so wide that it would not matter to the US economy if CAD doubled, tripled etc.
Take a gadget that costs $1 to make in Korea. Sell it stateside for $20. Where's the bulk of the cash going and staying? That's right, in the USA.
And what are red-blooded Americans doing if they're not performing repeated motions on bench assembly lines in the sweat factories of Taipai?
They're building outlets at home to stock those cheap factory goods. Americans build things to package and store the gadgetry, shoes and Barbie dolls. And when they're not home bulding things, they're overseas in sweatland setting up assembly lines.
Without America, Asia and the world would feel Jimmy Carter's malaise for an indefinite time.