January 14, 2005
THERE'S A REASON WE AREN'T ALL SUBSISTENCE FARMERS:
Thrift is a foreign concept (The Economist, Jan 14th 2005)
In theory, the falling dollar should be narrowing the trade deficit. Other things being equal, a cheaper dollar should make America’s exports more competitive and its imports dearer. Since May 2004, the dollar has fallen by 8.2% in trade-weighted terms. But the deficit has only widened in that time. [...]Living within your means by importing no more than you export has, it seems, become an un-American activity.
If you have more wealth than you know what to do with why wouldn't you pay other folks to make stuff for you?
Meanwhile, compare this chart to the rest of the story:
Comments
The Economist is not immune from the alien thought miasma that anticipates the EU creating economic abundance. So many epiphanies await them; they can't stand it.
Posted by: LUCIFEROUS at January 14, 2005 12:50 PM