TITLE:
United States Trade Deficit Implications of Economic Growth
AUTHORS:
Krzysztof Bryniuk
KEYWORDS:
Trade Deficit, Economic Growth, Economy, Economic Dependence, U.S. International Trading
JOURNAL NAME:
Open Access Library Journal,
Vol.10 No.11,
November
30,
2023
ABSTRACT: This research paper investigates the rapid decrease in U.S. international trading since 1985. There are many economists with different opinions about the implications of a negative balance of trade may have on economic growth. Some economists such as Mankiw and Krugman believe that the trade deficit has positive implications for the growth on U.S. economy. In contrast, there are economists that have opposite beliefs about the trade deficit. The negative balance of the trade also suggests that the United States became dependent on other countries, for example, China. This a comprehensive literary research paper that incorporates information from primary and secondary sources including the most current available data. The United States must stop depending on China or should implement new foreign policy and place more strict tariffs or ICs (mentioned above) for imported goods from China. The U.S. must end dependence on nuclear weapons, for example. The U.S. Congress must act quickly and require the Department of Defense to find alternate sources or counties to produce nuclear weapons in case of future military conflict or economic disruptions like COVID-19 period. Also, the U.S. local and federal government must invest more in academia, research, development, and innovation. This paper will also present some suggestions of possible and available economic alternatives that will reduce U.S. current trade deficit and it will provide some recommendations for future studies.