Transcript: Trade Problems Create Tension Between U.S. and Japan

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BOB EDWARDS, Host: Commentator James Fallows says that the current trade problems between Washington and Tokyo are due in part to the Clinton administration's very negative view of trade deficits.

JAMES FALLOWS, Commentator: For nearly 25 straight years the United States has run trade deficits with Japan. Through the last eight years the deficit has stuck at about a billion dollars a week. American responses to the deficit have fallen into three categories. One approach is to say that the deficit doesn't matter, and the U.S. shouldn't fret about it. In this view, the paramount goal of an economy is to provide goods to consumers at the lowest price. ...

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