San Diego experts weigh in: Do U.S. trade deficits really matter?
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36 billion yuan trade deficit in February, activity at as factories and ports slowed during the Lunar New Year holiday.
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(STR / AFP/Getty Images)
Question: Do trade deficits matter?
Bob’s Answer: NO
It’s not worth worrying about a trade deficit because it just means we import more than we export. While we have a large current trade deficit with China in particular, a strong economy is more important than a trade surplus. Our current deficit is largely due to the strength of our economy.
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While China’s policies create an even larger trade deficit, growing the economy should be our goal, not restricting trade or foreign ownership.
