A rising trade deficit is not necessarily bad

Some of the current administration’s actions such as tariffs, laying off federal workers, and slashing spending in some agencies seem arbitrary and haphazard. Whether or not you agree with these policies, as an economist I see the policies as a means to potentially address long-standing structural issues with the U.S. economy. We Americans like to purchase goods and services, especially cheap goods produced in low-cost countries. The trade deficit was $2.0 billion in January 1992 and $78.3 billi