But it is clear that, for the time being at least, the increase in spending on consumer goods and houses has come down several notches, albeit from very high levels.
Lower budget deficits are the surest and most direct way to increase national saving. Higher national saving would help to lower real interest rates, spurring spending on capital goods so as to put cutting-edge technology in the hands of more American workers,
Keeping out competitively priced goods would materially lower our standard of living.
The likelihood is that we shall be seeing some lower prices on imported goods as a result of the difficulties in Asia, ... But they will not permanently suppress the risks inherent in the tightened labor markets.