Do trade deficits matter? The question is important because America’s trade deficit in goods is large and persistent, about $2 billion every day. The economic argument that trade deficits matter begins with the observation that growth in real GDP depends on only four factors: consumption, government spending, business investment and net exports (the difference between exports and imports). Reducing a trade deficit through tough,...

Source: Wall Street Journal March 05, 2017 22:07 UTC