Replies

As you can see from your chart, the trade deficit declined markedly from 1986 under Reagan's policies through 1993.

BTW: I would note that the chart's creators are apparently trying to give a skewed impression that production increased only nominally over time...which is not true.

Examine the positive side for IP, Industrial Production note how it is slanted by squishing the dimensions thereto... Whereas the negative side is stretched out dimensionally. Your'e Comparing Oranges and Apples.

Keep in mind, it was our surplus in Manufactures which allowed the U.S. to almost eradicate its trade deficit...despite a serious energy import appetite which only grew larger during the Reagan recovery (even though we were again pumping new oil finds). The economy's thriving only increased the overall thirst for energy, and hence imports for foreign oil and Liquiefied natural gas.