Here's What's Behind the U.S. Trade Deficit

The video discusses the trade deficit, explaining it as a result of consuming more than producing. It highlights the link between fiscal and trade deficits, noting that tax cuts and fiscal deficits can increase the trade deficit. The discussion shifts to NAFTA, examining US-Mexico trade relations and tariffs, and debunking myths of unfairness. It concludes with suggestions for modernizing NAFTA to include e-commerce and data flows, reflecting changes in the global economy.

What is the primary reason for the trade deficit mentioned in the text?

How does cutting taxes and running a fiscal deficit affect the trade deficit?

In what ways does the text suggest that the current trading relationship between the US and Mexico is fair or unfair?

What is the average tariff rate for Mexico compared to the US as mentioned in the text?

What are some areas where NAFTA could be modernized according to the text?