Peter Schiff’s opinion is that the current account deficit is the major source for today’s economic weakness in the US. His prescription for the US is to stop consuming imports and start exporting more products and services. Even at an impressive 7% of GDP, the current account deficit dwarfs in comparison to overall household consumption, which makes up 2/3 of the total aggregate demand. Should we focus on the 7% and turn a blind eye on the rest of the 67%?
Is Peter Schiff right?