The nature of the U.S. trade deficit: A look at the persistence, alternatives, and cures

The United States of America faces one of the largest trade deficits in her history. The United States is the largest debtor country this world has ever known. Many say it is a do or die situation while others say it can only help us. The facts are the United States went from a $28 billion surplus in 1980 to a $125 billion deficit in 1987. The well being of the populace could very well depend on the choices made concerning the trade deficit. This paper will focus on the problems of the trade deficit including: its causes, persistence, alternatives to the existing system, the "cures" and the consequences of those policies.