Jeffrey Sachs, The Dangerous Absurdity of America’s Trade Wars
Last week, the US trade deficit widened to $621 billion, despite Trump’s promise that tough trade policies vis-à-vis Canada and Mexico, Europe, and China would slash it. This article reminds us that a deficit on the current account is purely a macroeconomic measure: the shortfall of saving relative to investment. Therefore, the US trade deficit is not an indicator of unfair trade practices by Canada and Mexico, the European Union, or China. Rather, it’s been exacerbated by the 2017 US tax cuts (reads in 6-7 min).

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