I've been consistently frustrated with the idea that trade deficits are necessarily bad things for a country like the United States to have. They're not necessarily good things either. What...
I've been consistently frustrated with the idea that trade deficits are necessarily bad things for a country like the United States to have. They're not necessarily good things either. What matters more why there is a deficit, and that often depends on the relationship between countries, and the industries where the largest trade imbalance happens.
The USA has a ~20 trillion dollar GDP. A few trillion in debts is relatively harmless when you have an economy that strong. People always harp about the debt and the deficits like they are...
The USA has a ~20 trillion dollar GDP. A few trillion in debts is relatively harmless when you have an economy that strong. People always harp about the debt and the deficits like they are apocalyptic doomsday triggers, because the numbers sound big and scary. When you put the numbers in context for the economy those debts are held against, they stop looking scary. Sadly, scary outsells facts, so you never see that side of the story in the media.
You're right about operational deficits. Trade deficits aren't even experienced by the government. It's just a way of estimating how much product and services are imported versus how much is...
You're right about operational deficits. Trade deficits aren't even experienced by the government. It's just a way of estimating how much product and services are imported versus how much is exported. They really should come up with another word for that. Import-Export difference?
I've been consistently frustrated with the idea that trade deficits are necessarily bad things for a country like the United States to have. They're not necessarily good things either. What matters more why there is a deficit, and that often depends on the relationship between countries, and the industries where the largest trade imbalance happens.
The USA has a ~20 trillion dollar GDP. A few trillion in debts is relatively harmless when you have an economy that strong. People always harp about the debt and the deficits like they are apocalyptic doomsday triggers, because the numbers sound big and scary. When you put the numbers in context for the economy those debts are held against, they stop looking scary. Sadly, scary outsells facts, so you never see that side of the story in the media.
You're right about operational deficits. Trade deficits aren't even experienced by the government. It's just a way of estimating how much product and services are imported versus how much is exported. They really should come up with another word for that. Import-Export difference?