But this focus has been accentuated of late by the potential effects of two trends that have intensified in recent years. One is the emergence of several developing countries - most prominently China and India - as global economic forces and the consequent reorganization of production processes and change in the nature and location of jobs here and abroad.
The second is our burgeoning trade and current account deficits and the possibility that they cannot be sustained at these levels. Like most interesting policy issues, these are difficult and complex, and they therefore carry a considerable risk that policy prescriptions will be ineffective or even counterproductive.1 The two developments are related, but only to a limited and indirect extent.