What are the potential positive and negative impacts from America's ever growing trade deficits?

Expert Answers

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Many people feel that growing trade deficits are a bad thing.  These deficits cause wealth to leak from the United States to other countries.  They are evidence that the United States is no longer the most efficient country in terms of manufacturing.  Therefore, they worry very much about these deficits.

Others, as in this link, argue that there are positive aspects to trade deficits.  Mainly, they argue that these deficits show that manufacturing is moving to the places where it can be done most productively.  This allows us to get goods and services more cheaply than we would get them if they were produced only in the United States.

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