United States trade deficit (1991-2005).
The United States has posted a trade deficit since the late 1960s (and trade deficits in the late 1960s forced the US off the so-called gold standard in 1971), and it has been rapidly increasing since 1997 (See chart). The US trade deficit hit a record high of 817.3 billion dollars in 2006, up from 767.5 billion dollars in 2005.
It is worth noting on the graph that the deficit slackened during recessions and grew during periods of expansion. Also of note, many economists calculate trade deficits and/or current account deficits as a percentage of GDP. The US last had a trade surplus in 1991, a recession year. Every year there has been a major reduction in economic growth, it is followed by a reduction in the US trade deficit. The well known investor Warren Buffett has proposed a tool called Import Certificates as a solution to the United States' problem.
