The United States has a classic multilateral trade imbalance. While it runs a large trade deficit with China, it also runs deficits with 87 other countries. A multilateral deficit cannot be fixed by putting pressure on one of its bilateral components. But try telling that to America's growing chorus of China bashers.
America's massive trade deficit is a direct consequence of an unprecedented shortfall of domestic saving. The broadest and most meaningful measure of a country's saving capacity is what economists call the "net national saving rate"? "“ the combined saving of individuals, businesses, and the government. It is measured in "net"? terms to strip out the depreciation associated with aging or obsolescent capacity. It provides a measure of the saving that is available to fund expansion of a country's capital stock, and thus to sustain its economic growth.
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