* JDG ([EMAIL PROTECTED]) wrote: > > Actually, it is much worse than it sounds ... Increasing exports > > enough to make a significant dent is not really possible -- as the > > US has switched to a service-oriented economy .... > > I don't want want to really disagree with the basic conclusion of the above > quote, but I do want to point out that the above is a non-sequitiur. > There is no theoretical reason why the US couldn't correct the trade > imbalance by increasing its exports of services.
We are actually running a small trade surplus on services now http://research.stlouisfed.org/fred2/series/BOPBSV/125/Max but it is hard to imagine that we could expand this surplus by a factor of more than 10 in the near future, which would be required to balance the trade deficit. Incidentally, almost all of the US trade deficit is in autos and consumer goods. We are in balance or close to balance on capital equipment and services. We are also (probably only temporarily, alas) roughly in balance on investment income. -- Erik Reuter http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
