By Bernard K. Gordon
America's exchange Follies controversially argues that the worldwide political economic system is hardening into nearby blocs, in North the United States, Latin the US, Europe and the Asia Pacific, prepared round a strong fiscal base and suspicious of one another. Bernard okay. Gordon's masterful research indicates that this department threatens American prosperity by means of restricting US entry to the world's richest and biggest markets, and endangers US defense through dividing the globe alongside financial and political strains. Provocative, unique and stimulating this booklet is key examining for all these attracted to American politics, exchange and overseas political economic climate.
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Extra resources for America's Trade Follies: Turning Economic Leadership into Strategic Weakness
Carvounis and B. Carvounis, United States Trade and Investment in Latin America, Westport and London, Quorum Books, 1992, p. 78. 14 P. Morici, “Export Our Way to Prosperity,” Foreign Policy, Winter 1995–6, p. 8. 15 Heritage Foundation, Backgrounder, No. 872, ibid. 16 V. Lopez and L. Yager, “An Aerospace Proﬁle: The Industry’s Role in the Economy, the Importance of R&D,” Facts and Perspectives, quoted in V. Golich, “From Competition to Collaboration: the Challenge of Commercial-class Aircraft Manufacturing,” International Organization, Autumn, 1992, p.
Eichengreen and D. A. Irwin, “Trade Blocs, Currency Blocs and the Reorientation of World Trade in the 1930s,” Journal of International Economics, 1995, Vol. 38, No. 5, pp. 1–24. America’s trade in its global context 31 2 For early descriptions of regionalism’s revival, see A. Bollard and D. Mayes, “Regionalism and the Paciﬁc Rim,” and J. ” in the Journal of Common Market Studies, June, 1992, pp. 125–41 and pp. 195–209. 3 The EEC’s original six threatened to withdraw from GATT if full compliance with Article 24 was insisted on.
We will close this chapter with a discussion of both issues. The importance of trade deﬁcits has long been downplayed by economists: their discipline teaches that bilateral deﬁcits in particular have little economic meaning, and should be ignored. But perversely, what has been ignored instead is the economists’ advice. The result is that to most Americans, the nation’s trade deﬁcits have been seen as powerful political symbols suggesting national weakness and economic decline. Much of the responsibility for that profoundly mistaken view, and for the confusion generally about trade deﬁcits, belongs to America’s political leaders, whose statements regularly reinforce the false deﬁcit-decline linkage.