The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?
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That’s a tough question. The US dollar is a “reserve currency,” which means other countries want to save their money in US dollars, and there is a large demand for those dollars. This results in dollars leaving the country, and a trade deficit (generally considered a bad thing).
On the other hand, if the US is in debt to other countries, it can print more dollars. In this sense, being a reserve currency is good for the US.
This is called the [Triffin dilemma](https://en.wikipedia.org/wiki/Triffin_dilemma) and is sort of a “suffering from success” issue for the US. The US is constantly dealing with money leaving the country (capital outflows), however that money gives the US tremendous influence abroad and makes it very easy to pay down foreign debt.
You may also be interested in [this video](https://www.youtube.com/watch?v=y9HoPF0_a6A) on the weaponization of the US dollar, which is possible due to its reserve currency status.
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