United States Trade Deficit
The U.S. has held a trade deficit starting late in the 1960s. Its trade deficit has been increasing at a large rate since 1997 (See chart) and increased by 49.8 billion dollars between 2005 and 2006, setting a record high of 817.3 billion dollars, up from 767.5 billion dollars the previous year.
The graph indicates that, as Frédéric Bastiat predicted, the deficit slackened during recessions and grew during periods of expansion. Also of note, many economists calculate trade deficits and/or current account deficits as a percentage of GDP. The US last had a trade surplus in 1975. Every year there has been a major reduction in economic growth, it is followed by a reduction in the US trade deficit.
Read more about this topic: Balance Of Trade
Famous quotes containing the words united states, united, states and/or trade:
“America—rather, the United States—seems to me to be the Jew among the nations. It is resourceful, adaptable, maligned, envied, feared, imposed upon. It is warm-hearted, overfriendly; quick-witted, lavish, colorful; given to extravagant speech and gestures; its people are travelers and wanderers by nature, moving, shifting, restless; swarming in Fords, in ocean liners; craving entertainment; volatile. The schnuckle among the nations of the world.”
—Edna Ferber (1887–1968)
“Before abstraction everything is one, but one like chaos; after abstraction everything is united again, but this union is a free binding of autonomous, self-determined beings. Out of a mob a society has developed, chaos has been transformed into a manifold world.”
—Novalis [Friedrich Von Hardenberg] (1772–1801)
“By intervening in the Vietnamese struggle the United States was attempting to fit its global strategies into a world of hillocks and hamlets, to reduce its majestic concerns for the containment of communism and the security of the Free World to a dimension where governments rose and fell as a result of arguments between two colonels’ wives.”
—Frances Fitzgerald (b. 1940)
“People run away from the name subsidy. It is a subsidy. I am not afraid to call it so. It is paid for the purpose of giving a merchant marine to the whole country so that the trade of the whole country will be benefitted thereby, and the men running the ships will of course make a reasonable profit.... Unless we have a merchant marine, our navy if called upon for offensive or defensive work is going to be most defective.”
—William Howard Taft (1857–1930)