| Topic: |
Religions > Atheism |
| User: |
"maff" |
| Date: |
26 Jun 2004 03:59:35 PM |
| Object: |
OT: How to slay America's monster trade gap? |
How to slay America's monster trade gap?
http://www.economist.com/agenda/displayStory.cfm?story_id=2784281
Jun 22nd 2004
From The Economist Global Agenda
America's trade gap is growing again. Worse, it may be extremely hard
to close it without causing much economic pain—and not just for
Americans
LAST year, when the dollar resumed its steady decline after a brief
spring rally, many observers felt vindicated and a little relieved.
The world had grown too dependent on selling its goods to America. For
its part, America was too dependent on flogging its assets to the rest
of the world to finance its addiction to imported goods. To be sure,
America's willingness to spend more than it could strictly afford on
other countries' manufactures was welcome at a time when most of these
countries' economies were sluggish. But deficits of over 5% of GDP in
America's current account could not be sustained. Having carried the
world economy through the first, crucial leg of recovery from the
slowdown of 2001, some economists felt it was time for America to
"hand over the baton" to the rest of the world and pause for breath.
.
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