Abstract
American trade policy is being run by an administration that does not understand basic economics and it is a threat to global welfare. US President Donald Trump and his advisors are focussed on reducing a large trade deficit by putting up trade barriers. The main cause of a country’s trade balance is the domestic savings and investment gap, not trade policy — Americans don’t save enough compared to the amount they want to spend on private consumption, investment and government.
| Original language | English |
|---|---|
| Specialist publication | East Asia Forum |
| Publication status | Published - 26 Mar 2018 |