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Essay / Research Paper Abstract
This 6 page paper examines the causes of the trade deficit in the U.S. This paper asserts that this deficit is indeed serious, and has a plethora of significant ramifications. Bibliography lists 6 sources.
Page Count:
6 pages (~225 words per page)
File: D0_GSdeficit.rtf
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Unformatted sample text from the term paper:
has changed the lives of all Americans and continues to be of serious concern. Of particular concern is the issue of the trade deficit, which has reached historic lows
and significantly impacts the economy, adding to the damage. In this age of globalization and a recent history of liberal trade policies, the trade deficit is among the most
influential of factors in determining the health of the overall economy in the United States. The results of the deficit are clearly adverse,
and are a significant factor in the overall health of the economy. There are many who argue, or have argued in the recent past, that there is no need
to worry about the trade deficit, especially in when the economy was thriving and prosperous (Preeg, 2000). It seems as if when employment is high and growth is high
then worrying about the trade deficit seems to many to be a waste of time (Preeg, 2000). I contend that such a view is short-sighted, and not reflective of
an understanding of the bigger picture. To understand the economy in an in-depth and long-term manner would be to realize that the trade deficit is intrinsically linked to the
health of the general economy, and that any evidence to the contrary merely represents a lag in cause and effect. The
origins of this deficit are in large part the result of the accrual of foreign debt (Preeg, 2000). Contrary to
popular conception, the trade deficit is not caused by unfair trade practices abroad or declining industrial competitiveness at home. Trade deficits reflect the flow of capital across international borders, flows
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