The insane Trade Deficits/outsourcing we have been running ARE the serious global economic crisis.
The world cannot run a trade deficit and thus can't contribute to a global economic crisis.
That America runs a trade deficit is neither inherently good nor bad. Because we run a trade deficit, we also - must - run a capital surplus. That means foreigners invest more here than we invest abroad, which means more jobs than otherwise would exist.
Outsourcing is not a serious global economic crisis. It's a crisis to those who used to work in manufacturing and now work for lower wages elsewhere, people who are mostly unskilled and semi-skilled labor without a college degree. Outsourcing is a boon to the owner's of capital, who are mostly American.
A crisis for America is a crisis for the world.
THe effects of this massive long running trade deficit seem to be inherently bad to me.
As outsourcing seems to be hitting America and FIrst World nations hardest, it seems to be a serious global economic crisis.
And yes, owner's of capital are doing well. Policy should consider the interests of all the citizens AND the overall health of the nation as a working together whole.
The effects on the MIddle Class are detrimental for America.
A trade deficit or surplus is neither inherently good nor bad.
Europe runs a trade surplus with America. And they rely more on trade than we do.
But Europe has a slower growing economy than ours. Europeans have a worse economy than we have. Yet they also have more manufacturing. Nobody, outside of some leftists, thinks we should be more like Europe.
If two economies start exactly the same but one grows faster than the other, the slower growing economy will run a trade surplus. That's a truism. So is it better to have a trade surplus and a slower growing economy or a trade deficit and a faster growing economy?