But it was a bogus report. Now, here's the GDP rub. In the wacky world of Keynesian trade deficit accounting, an import-plunging trade deficit decline adds to economic growth. Keynesian demand-siders believe that rising demands for international goods cause a reduction in the demand for domestic goods. So trade deficits are bad for growth and trade surpluses are good for prosperity.
Trouble is, the only time the U.S. runs a balance in trade is during recessions.
During those periods Americans did not import because their impoverished financial position prevented them from doing so. The logical conclusion of Keynesian trade deficit thinking is that recessions are great. On the other hand, since the U.S. has been growing faster than the rest of the world for the better part of the past two decades, then of course we import more than we export and the trade deficit widens. Though in fact, as a measure of domestic prosperity, the level of both imports and exports has continued to rise. Then there's the classic economic principle of comparative advantage.