We are irrevocably part of an international economy. To enjoy economic growth
at home we also need rising living standards abroad. Americans generally recognize
that stagnation in Japan and Europe contributes to U.S. stagnation because their
slow growth closes potential markets for American exports. When their own domestic
customer bases grow too slowly, Japanese and European firms try selling goods too
cheaply in the U.S. Contemporary disputes in steel and autos, to name but two,
illustrate other nations’ temptation to export their domestic recessions.