would you like a trade surplus, say like Japan with its 0% GDP growth. OR like Germany with its 12% unemployment.
The last time the US had a current account surplus was 1991, when unemployment was 8%, GDP growth was 1% and Al Gore was calling it the worst economy in 50 years. the uS has had consistently a trade deficit since about 1971 and did so for the first 100 or so years of its existance.
I'll explain this becasue no one here really understands it. The US has a trade deficit for two reasons:
1. Our GDP growth is much fast than our developed partners GDP growth
2. The US Invests more than it Saves, so it must import capital.
Notice none of the reason were free trade or unfair trade practices.
If you dont like the trade deficit, I suggest stop buying not only foreign goods but US Made ones as well (US goods consumed here are goods that cannot be exported, so yes when you consume US goods, you are increasing the trade deficit). You should buy US and Foreign Govt BONDS. This will drive the trade deficit towards balance faster than any silly mercantilist trade policies.
Actually, for what it is worth, Japan's economy has been growing recently. From Forbes, June 12th, about the recent revision to the GDP growth numbers for Japan from January-March:
Overall GDP growth in January-March was revised down to a real, annualized rate of 4.9 pct, from the 5.3 pct increase in the preliminary estimate released May 17.Even the revised data shows the world's second-largest economy grew about twice the rate initially expected, and at its fastest pace in a year, due to expanding domestic demand and corporate capital spending.
At that time we where taking payments from the Saudis for the Gulf War. Had nothing to do with trade.
You mean SPENDS, not invests. If we're investing, it sure isn't in manufacturing or R&D like we used to...or should be. And the selling of Treasuries to finance our government's domestic spending, or the housing bubble, is not U.S. investment.