链典4矮降贸多大 高级商务英语阅读 Supplementary Reading for Chapter 5 Fast Track to Lost Jobs (1) US trade deficits and foreign debt:problems or symptoms? Gerard Jackson Monday 10 May 2004 The size of the U.S.deficit is causing alarm among some commentators who are using it to draw attention to America's foreign debt.Even though mercantilist fallacies are lurking behind these warning that is no reason to dismiss them outright. However,this is basically what optimists are doing when they assure the public that there is nothing to worry about because the country is borrowing to expand its productive capacity.As evidence of this view they point out that the US stock market has risen relative to the rest of the world,inferring that this rise is a reflection of increased investment. They also correctly point out that the US had deficits throughout the nineteenth century.In fact, from the end of the War of Independence in 1784 right up to 1914 America was a debtor nation, running an annual deficit on its balance of trade until the 1870s",even though she had built a tariff wall.(Protectionists argue that tariffs cure the alleged ills of trade deficits). How could this be?The answer is simple:most of the debt was incurred by individuals who used it to import capital goods,mainly from Britain.In other words,American entrepreneurs used British savings to expand America's productive capacity.During this period thousands of these entrepreneurs repaid their British loans,others took out new loans while thousands more borrowed for the first time. And so it went on,decade after decade and each decade saw the American economy expand and living standards rise.Of course,some entrepreneurs failed.But the consequences of failure were 第1页共7页高级商务英语阅读 Supplementary Reading for Chapter 5 Fast Track to Lost Jobs (1) US trade deficits and foreign debt: problems or symptoms? Gerard Jackson Monday 10 May 2004 The size of the U.S. deficit is causing alarm among some commentators who are using it to draw attention to America's foreign debt. Even though mercantilist fallacies are lurking behind these warning that is no reason to dismiss them outright. However, this is basically what optimists are doing when they assure the public that there is nothing to worry about because the country is borrowing to expand its productive capacity. As evidence of this view they point out that the US stock market has risen relative to the rest of the world, inferring that this rise is a reflection of increased investment. They also correctly point out that the US had deficits throughout the nineteenth century. In fact, from the end of the War of Independence in 1784 right up to 1914 America was a debtor nation, running an annual deficit on its balance of trade until the 1870s*, even though she had built a tariff wall. (Protectionists argue that tariffs cure the alleged ills of trade deficits). How could this be? The answer is simple: most of the debt was incurred by individuals who used it to import capital goods, mainly from Britain. In other words, American entrepreneurs used British savings to expand America's productive capacity. During this period thousands of these entrepreneurs repaid their British loans, others took out new loans while thousands more borrowed for the first time. And so it went on, decade after decade and each decade saw the American economy expand and living standards rise. Of course, some entrepreneurs failed. But the consequences of failure were 第 1 页 共 7 页