Another idiot that flunked Econ 101. A trade deficit is bad, it is an outflow of wealth from this country.
I guess none of these people remember when this country was a creditor nation and not a debtor nation.
I am continually astounded by the stupidity of those writing finance.
Back in the '60s and '70s, news of increased trade deficits would cause the stock market to fall. Now, they pretend skyrocketing trade deficits are no problem, and sometimes that's correct for the former US producer that moved production to a cheap labor nation and now exports back to the US.
If a trade deficit is bad, explain Hong Kong or at least Hong Kong before it was returned to China.
>>>A trade deficit is bad
In my house we love being able to buy stuff cheaper. We’re able to do more with our money, and able to make our business more profitable.
>>>it is an outflow of wealth from this country.
Outflow of dollars that has to be spent... in this country. We get lots of stuff, they get dollars, the dollars come back.
If out flow is bad how come states that produce more than others are not broke? How comes states that produce less are not broke?
Wrong. Money is not wealth. Goods and services are wealth. Money is the medium of exchange. If money were wealth we could just print up as much as we want and everyone could be rich, but it doesn't work that way. That would only make the goods and services more expensive.
When we send money to China to buy goods it's because we are getting them cheaper than any other source. Getting them cheaper makes us richer. People talk about trade as if the actual goods were static things and there's no economic benefit to us from buying them from China. But there is. Making Chinese goods more expensive makes US poorer.
Since it's no longer reflected by the movement of actual money, it's OK. Until it isn't. And when it isn't, it's going to be very not OK.
Free traders = free traitors in my book.
We should have an economic policy that is conceived from first to last to be about enhancing the economic condition of the average working American. To hell with the rest of the world, Be it military or economic terms, the entire population of Asia, Europe and the Middle East does not mean as much to me as the well being of one American Citizen.