People incorrectly focus on trade deficits. It has become universal wisdom that being a net exporter is the key.
America ran trade deficits during the fastest period of its growth, almost the entire 19th century. So how did we accumulate so much real wealth and production while running trade deficits?
Answer: because the profits being generated domestically outstripped the import imbalance. We had no real national debt. Debt being a killer if you have a trade deficit (countries like China end up buying up your debt as a place to park their imported dollars, then you become beholden to their interests).
America ran trade deficits during the fastest period of its growth, almost the entire 19th century. So how did we accumulate so much real wealth and production while running trade deficits?
Answer: because the profits being generated domestically outstripped the import imbalance. We had no real national debt. Debt being a killer if you have a trade deficit (countries like China end up buying up your debt as a place to park their imported dollars, then you become beholden to their interests).