y. At the end of 1998 the unemployment rate fell to 4.5% and consumer price inflation to 1.6%, which is the lowest level since the 1960. This outstanding macroeconomic performance has been greatly followed by a large and growing current account deficit, which in 1998 reached a record level of $223 billion (2.7% of GDP). The trade deficit has enabled the U.S. economy to keep up with its strong rate of growth. Open economy brings imports, which are often at a lower price, and they help to satisfy domestic demand. They have also contributed to lower domestic prices and wider choice for the U.S. consumers. The U.S. producers have benefited from lower costs and wider choice of input, too. It increased their competitiveness, resulting in more jobs and higher wages. Imports have helped with inflation pressure that might otherwise have emerged as a result of the very strong growth of domestic demand and low unemployment rate, thereby supporting low market interest rates. An additional source of funds for domestic investment flow from abroad. Foreign investors made up the shortfall of national savings relative to domestic investment. Foreign investment has enabled the U.S. economy to grow faster then would have been the case if it were relied solely on domestic saving. Foreign investments have also contributed to the recent market improvement in labor productivity. As a result, average living standards in the United States, as measured by per capita GNP, are at $28,740, among the highest in the world. Countries that remain closed, remain poorer, underdeveloped, cut off from the world of rights and freedom. This poverty, not trade, is the main cause of bad working conditions, and it must be met by expanding commerce, not imposing sanctions. If the U.S. wants to help those nations where working conditions are poor, the U.S. should open more to them. A perfect example is China. Some politicians, as I said in the beginning, oppose trade with China...
