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Trade Deficit: Made in the USA?
Posted By Bryan Riley On May 11, 2011 @ 4:00 pm In Enterprise and Free Markets | 6 Comments
The U.S. Bureau of Economic Analysis just announced that the trade deficit for March  increased to $48.2 billion.
The federal budget deficit plays a major role in creating U.S. trade deficits. When the government sells Treasury bonds to finance the budget deficit, it competes with U.S. exporters and private borrowers for scarce foreign dollars.
Trade deficits are not necessarily a cause for concern. But in this case, they are a symptom of the real problem: massive government budget deficits.
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2011/05/11/trade-deficit-made-in-the-usa/
URLs in this post:
 trade deficit for March: http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm
 borrowed: http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/tressect.txt
 trade deficit: http://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf
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