HONESTY? WHAT DOES THAT HAVE TO DO WITH IDEOLOGY?:

Reconfiguring U.S. trade numbers in such a fashion would be a bad idea motivated by an economically shaky assumption. The assumption is that exports are the positive side of the trade ledger and imports are the negative side. Therefore, a trade deficit is a net negative for the U.S. economy.

 

By reducing the official count of exports and enlarging the trade deficit, or so the thinking goes, policymakers may be more likely to take steps to "fix" the deficit by reducing imports. 

This mercantilist approach misses the core reality of trade -- Americans benefit from imports and exports, arguably even more so. Imported goods benefit the vast majority of Americans by spurring more competition to satisfy consumers with better products at lower prices. This raises the real wages of American workers, especially low-income workers who spend a larger share of their budgets on such tradable goods and food, clothing, and shoes.  

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