I have a “trade deficit” with my grocer, mechanic, barber ...
Nope. That is a fallacy from fake New Age College Economics. You instead have a trade balance with your grocer, not a deficit.
You pay $20 for $10 hamburger meat, then you have a Grocer DEFICIT.
I pay $10 for $10 hamburger meat, then I have a Grocer BALANCE.
And I would LOVE to sell you overpaid stuff.
RE: You pay $20 for $10 hamburger meat, then you have a Grocer DEFICIT.
Don’t we all? The Grocer has to make a profit for the cost of his rent, employees, etc.
He’s not going to sell you $10 hamburger meat for just $10.00
So, it seems you are making my point — I have a TRADE DEFICIT, not a trade balance with my grocer.
How does that harm me? I’m simply paying for the product PLUS the convenience of buying it close to home.