The Real Reason for the Trade Deficit

The performance of the U.S. economy in the 20th century owes much to the predominant role of the U.S. dollar in the international monetary system. A large factor behind attaining this role was the political and military supremacy the United States gained after World War I. The position of the dollar in the world today represents a major underpinning of prosperity at home and provides the basis for the expansion of America’s…