Breitbart Business Digest: Trump’s Tax Cuts Will Not Cause a Surge in the Trade Deficit

Breitbart Business Digest: Trump’s Tax Cuts Will Not Cause a Surge in the Trade Deficit

Global Demand for Dollars Doesn’t Turn on Rates

In our previous column, we explained why the claim that tax cuts necessarily lead to higher interest rates—and thus trade deficits—is far from settled. But what about the next step in the argument: that a larger deficit leads to a stronger dollar, which then widens the trade gap? That link, too, doesn’t hold up.

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