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Within the current timeframe it's mostly due to Clinton's overly strong dollar. But the economy can take decades to reach equilibrium, and it's still recovering from the Bretton Woods era (early 1940's to early 1970's) when the dollar and imports and exports were artificially held flat. People put too much emphasis on imports and exports. A far better focus is on GDP and productivity growth.

Then why do we get larger and larger trade deficits?

The whole idea that a "trade deficit" is a bad thing is nonsense. Nations do not trade with each other; people do. Every international transaction that Americans engage in will, by definition, leave both parties to the transaction believing they are better off than before - otherwise the transaction would not occur. By this measure, the "balance of trade" is always positive, benefiting the nation as a whole.

One reason that our "trade deficit" is higher is that we have a hell of a lot more money to spend than anyone else does. That's not a bad thing.

I would argue that a "trade deficit" is a good thing. Trade deficits signify growing consumer demand and expanding investment opportunities. Indeed, those that advocate a smaller trade deficit should first realize the following:

*Industrial production in the United States has climbed steadily in the past two decades during a time of historically large U.S. trade deficits.
*Larger trade deficits correlate positively with FALLING unemployment. As an expanding economy creates jobs, it also creates demand for imports and for capital from abroad.

Then why do we get larger and larger trade deficits?

A trade deficit is nothing more than an investment surplus. If you really want to get rid of the trade deficit, just change the interest rate and exchange rate environment downwards.

A trade deficit also really tells you that we produce high valued goods much of the rest of the world can't afford, while they produce low valued goods almost anyone can buy anywhere.

Or look at the investment picture.

Foreign countries and foreign based companies outsource to the US things like automobile factories, steel finishing, chemical plants, pharmaceutical plants, the education of their best and brightest, etc.

We outsoure telemarketing call centers, cheap toy factories, apparel sweat shops, computer programming drudge work, etc.

Frankly, it sounds like a fair trade to me.