IT'S THE ECONOMY, STUPID!

Larry Kudlow, an economist, columnist and TV personality, for whom I have great respect, summarizes todays US economic strength and concludes we are headed in the right direction.

Most interesting quote is regarding trade deficits, over which many politicians fret:

• "As for the claim that trade deficits are bad for the U.S. workers, consider this thought from Cafe Hayek blogger Russell Roberts, a professor at George Mason University: "The U.S. has run a merchandise trade deficit for every year since 1976, trillions of dollars of deficits. And since 1976, the U.S. economy has created over 50 million jobs.""

With only 5% unemployment, it seems spending energy worrying about trade deficits and the manufacturing adjustments being made over the past few decades is a waste from the standpoint of economics.

I think the manufacturing adjustments must be controlled at some level to allow the U.S. the ability to produce appropriate products in case of requirements for defense. But for reasons other than that, it seems trade deficits are simply a result of manufacturing adjustments that are required to allow economies worldwide to grow.