March 15, 2019
The U.S. trade deficit in goods jumped 10% in 2018, the highest peg on record. If you believe that a rising trade deficit is bad for the economy, you’re not alone. Economists and politicians likewise fret about it – yet, should they be?
Over the past 40 years, the trade deficit and the stock market—and the overall economy—have actually tended to move in the same direction. That means that rising deficits are associated with economic growth and a rising stock market. So why is the relationship the opposite of what you learn in Econ 101?
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.