UP co-founder Art Laffer explains:

Trade deficits are capital surpluses. That’s when you bring the capital home. So anything that says the trade deficit is bad is completely wrong. The US needs a trade deficit because that’s a capital surplus.

When Reagan’s tax cuts took effect on January 1, 1983, the US went into a huge trade deficit as the economy boomed beyond belief. Everyone was trying to invest in the United States, Larry.

And what do you want? Capital lined up in your borders trying to get into your country or trying to get out of your country. Of course, you want them to come into the country, and that’s what happened with Reagan. By the way, that’s what’s going to happen with Trump with his phenomenal policies.