The US persistently runs trade deficits, Japan trade surpluses (all of which is here represented by current account balance as a share of GDP).Yet what many trade hawks might find surprising is how the two economies have performed over the past 20 years. Back in 1994, US per capita GDP was about $7,000 higher. Today it’s $14,ooo. This might especially surprise politicians who view the trade balance as the key factor in economic growth. (The US also tends to have major job gains when the trade deficit is rising.)

Read More…

Advertisements