U.S. Trade Deficit Hits Record $600 Billion

According to an article in the New York Times, the American trade deficit broke the $600 billion barrier in 2004. The figure amounts to more than 5 percent of the American economy. Treasury Secretary John W. Snow, said that “the ability of American Consumers to buy more imports demonstrated that the American economy was growing faster than other countries, and according to the Treasury Department spokesman, Rob Nichols, “We are importing more than those other economies, because we are creating more disposable income than they are.” So when is the trade deficit going to go down, and as consumers, what can we do about it? Is this were “Buy American” could come into play? One answer or a factor that will help out the trade deficit is that the US dollar has been declining recently, which should make American exports cheaper and hopefully more attractive to overseas consumers.