Recently, The Observer newspaper of UK criticised President Donald Trump for his “petulant, childish behaviour combined with a staggering lack of knowledge and contempt for facts”. While I agree with most epithets, on one point Trump is surely right: that the huge and persistent trade deficit of the US has led to much lower employment in the domestic industrial sector than what it otherwise would have been. He blames China, Mexico and everybody else for the deficit, but not the vaunted “strong dollar” policy of the US, which keeps up the consumption level of the worse off through cheap imports.
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