Dean Baker

Recent Articles

How Big Is China?

This is not a grand existential question; I am referring to the size of its economy. According to most news reports, China's GDP is approaching $2 trillion, rivaling Germany for the #3 ranking in the world, behind the United States and Japan. In fact, this figure grossly understates the size of China's economy. It is already far larger than Japan's economy and is likely to surpass the size of the U.S. economy in less than a decade.

Surprising News on Mexico at the Washington Post

Readers of the Washington Post might have been surprised to read that since the passage of NAFTA, "Mexico's gross domestic product has ballooned, multiplying nearly seven-fold, from $108 billion in 1993 … to $748 billion in 2005" ("Mexican Deportee's U.S. Sojourn Illuminates Roots of Current Crisis," 4-17-06:A1). This amounts to a world record 17.5 percent average annual rate of growth in the 12 years since NAFTA was implemented.

Budget Deficits and Current Account Deficits

A New York Times story on Iceland provides a good opportunity to discuss the asymmetry in reporting on government budget deficits and national current account deficits. While news of the budget deficit routinely appears prominently on the front pages (in addition to occupying considerable space on editorial and op-ed pages) discussion of the current account deficit is generally relegated to the inner pages of the business section. Since the long-term impact of the two on the economy is comparable, there is little justification for the difference in treatment.

The "Theft" of Health Care by Immigrants: Does It Matter?

The New York Times ran a front page story on Sunday that could have been a case study of why it is essential to put budget numbers in context. The article, "Medicaid Rule For Immigrants May Bar Others," explains how new rules intended to prevent illegal immigrants from getting Medicaid may also prevent many eligible beneficiaries from getting assistance. The problem is that many low income people don't possess the necessary documentation (e.g. drivers licenses or birth certificates) needed to receive Medicaid under the new rules.

Immigration: Die at the Border and Open Borders

I want to follow up quickly to a couple of notes on my posting where I referred to the "Die at the Border" policy. I was not arguing for open borders. I don't think that anyone who has given the issue serious thought advocates open borders, since a literal open border policy would almost certainly imply an inflow of hundreds of millions of people in the next couple of decades.