The totally backwards assumption underlying the entire global trade debate

We need to talk about the trade deficit

A container ship leaves New York.
(Image credit: Richard Levine/Demotix/Corbis)

We need to talk about the trade deficit.

That's the current account balance, in technical economic speak. It's the sum of all goods, services, and investments flowing out of America to other countries, and from other countries into America. If the balance is positive, America is exporting more goods, services, and investments than it's importing. That means we have a trade surplus. If the balance is negative, America is importing more than it's exporting, and we have a trade deficit.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.