Guest Post by Stephen Roach
NEW HAVEN, Conn. (Project Syndicate) — “When governments permit counterfeiting or copying of American products, it is stealing our future, and it is no longer free trade.” So said President Ronald Reagan, commenting on Japan after the Plaza Accord was concluded in September 1985.
Today resembles, in many respects, a remake of this 1980s movie, but with a reality-television star replacing a Hollywood film star in the presidential leading role — and with a new villain in place of Japan.
Back in the 1980s, Japan was portrayed as America’s greatest economic threat — not only because of allegations of intellectual-property theft, but also because of concerns about currency manipulation, state-sponsored industrial policy, a hollowing out of U.S. manufacturing, and an outsize bilateral trade deficit.
Continue reading “America is in denial about the trade deficit — it’s not China, it’s us”
