Back when offshoring production by Corporate America to cheap countries was hailed as good for the overall economy, rather than just good for Corporate America, any fears about potentially exploding trade deficits were papered over with visions of the new American Dream:
America was great at producing and selling high-value services – the financialization of everything, movies, software, business services, IT services, etc. Exports of these high-value services would make up for the imports of cheap goods.
And trade would balance out.
By Wolf Richter. Originally published at Wolf Street
RE: It is disturbing that the only time US had a near zero deficit was in 1992 and the dollar was low against the swedish krona.
Nu står kronan i 8.78. Det var när dollarn sjunkit från 9:40 till 5:30 som Carl Bildt m fl till varje pris ville försvara kronkursen
Dollarn skulle inte kosta mer än 5:30, tyckte Bildt, med flera.