US Trade Deficit

The US Trade Deficit is when the total goods and services the U.S. imports is greater than the total it exports. In other words is the excess of imports over exports. When the amount of imports exceeds the amount of exports, the country or the economy faces deficit.

The United States trade deficit shrank in December 2007 for the first time in five years. It went down because the country was importing more goods than exporting, which lead to losing money. On that particular month, the country imported around $203.08 billion and exported around $144.32 billion. This lead to the import exceeding the export by $58.76 billion.

The value of the US dollar has to do with the trade deficit falling because due to the downfall of the US dollar, it lead to people being more interested in buying cheaper products from US, which is what cause an increase of exports of US products.

I think that a large trade deficit is bad for the economy because not does it only have a negative result in the country, but it also leads to the country losing money. With the country having more imports than exports, it will most of the time lead to falling into a trade deficit; making the US depend on other countries products. Therefore, if it was the opposite, exporting more than importing would be better causing the economy to trade surplus.