Elections are not won or lost due to economists warning about the NIIP. People care about current account deficits insofar as they cause plant closures, wage losses, and harm to communities across the country. This damage is what makes sustained current account deficits politically toxic. The core of the U.S. current account is the trade deficit, which pressures the labor market from two directions. Rising imports displace domestic production in trade-exposed sectors, while a relatively overvalued dollar suppresses export-oriented employment.
~ Michael Starr via American Affairs

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