Wednesday, December 05, 2012

Focusing on the Wrong Deficit

There has been one big change in the U.S. economy over the last 30 years -- globalization.  Inflation is down, unemployment is up, wages are down, profits are up, and fiscal deficits are up because of this.  All of these are secondary to the primary effect of globalization, which is itself due in large part to improved communications technology.



  • I vaguely remember Ravi Batra saying something about how the trade deficit essentially forces the government to deficit spend. Is this correct? Also, what do you think the solution is to reducing the trade deficit?


    By Blogger John Holbrook, at 4:19 PM  

  • Yes, I think that's correct.

    Warren Buffet's import certificate proposal might work -- Import Certificates

    By Blogger Detroit Dan, at 6:57 AM  

Post a Comment

<< Home