Economist James K. Boyce discusses the unsustainable nature of current trade deficits and the implications of neoliberal policies. With a trade deficit of $971 billion in 2022, the loss of millions of manufacturing jobs is notable, particularly affecting workers of color. Boyce believes neoliberalism is ending, yet its replacement remains unclear. The potential dangers of authoritarian governance loom as economic policies shift, but there is also hope for positive alternatives. Ultimately, the direction of economic policy remains a significant question moving forward.
We should not let the follies of Trump's tariffs overshadow the follies of the gung-ho globalization that preceded them. So said the award-winning economist James K. Boyce in a recent interview. In 2022, the most recent year that data is available, the US trade deficit totaled $971 billion or 3.77 percent of the GDP. The last US trade surplus was in 1975.
It is now evident that the era of neoliberal trade that defined the last several decades is over... What follows neoliberalism...remains up for grabs, illustrating the uncertainty of the current economic landscape.
If the US weren't a 'safe haven' for investors, these deficits would have forced a 'structural adjustment' of the US economy long before. It is hard to imagine that these trade deficits can persist forever.
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