Word: demand
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Dates: during 1980-1989
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Moreover, Americans will turn increasingly to homemade goods rather than imports. "A larger share of total domestic demand will be satisfied by domestic production," says Saul Hymans, professor of economics at the University of Michigan. To meet the increased demand, U.S. companies will have to boost capacity, and that will give a forceful stimulus to capital goods industries. "Exports and capital spending are two very powerful forces," says Charles Reeder, a former chief economist for Du Pont and now an independent consultant...
...months now that the long fall of the dollar, which has declined by 40% against the major currencies since early 1985, has not produced a turnaround in the trade balance. According to economic theory, a cheaper dollar makes U.S. products less expensive to foreigners and thus eventually boosts demand for American exports. Conversely, a weak dollar makes foreign goods more costly in the U.S. and dampens Americans' enthusiasm for imports. That, in fact, is what has happened: this year exports have increased, and the growth of imports has slowed sharply. The problem is that with the dollar continuing to drop...
Many of the economists are optimistic, however, that the trade gap can be substantially reduced without an economic downturn. They expect increased growth abroad to boost demand for U.S. exports. One especially encouraging sign: Japan's economy grew at an annual rate of 8.4% in the quarter ending in September, thanks in part to a $38 billion government program to stimulate the economy that passed the parliament last spring. Roger Brinner, chief economist of the forecasting firm Data Resources, predicts that even West Germany will spur its economy and increase imports from the U.S. Says he: "The stimulus in Europe...
...essential steps toward keeping inflation in check -- and correcting the trade imbalance -- is a substantial reduction in the federal budget deficit. Years of excessive Government spending have put upward pressure on prices and helped overstimulate demand for imports. Many of the economists in the survey saw the recent budget compromise fashioned by Congress and the White House, which is intended to trim $30 billion from the deficit next year, as woefully inadequate. "The 1987 budget had a lot of phony stuff in it that will come back to haunt us in 1988," warns Jerry Jordan, chief economist at First Interstate...
...Waves comes out in straw hats and Mexican ponchos to do the Kingston Trio's Tijuana Jail at 45 r.p.m. Donnie Lovedart does a hip- rolling dance and flips hearts backhand to the ladies. The two girls in housecoats (bad news, Kim, they're back on the bill tonight) demand "R-e-s-p- e-c-t." And in a strategic countermove, Buchan leaves Lili von Shtupp in the dressing room, teases out her hair and does her Whoopi Goldberg routine instead -- head rocking brainlessly from side to side, arms flopping in front of her like windshield wipers...