Blaze@feddit.nl to Buy European@feddit.ukEnglish · 6 days agoEconomists, is this trade balance analysis correct?europe.pubimagemessage-square38fedilinkarrow-up11arrow-down10file-text
arrow-up11arrow-down1imageEconomists, is this trade balance analysis correct?europe.pubBlaze@feddit.nl to Buy European@feddit.ukEnglish · 6 days agomessage-square38fedilinkfile-text
minus-squarekarashta@piefed.sociallinkfedilinkEnglisharrow-up0·edit-26 days agoWhy must it be balanced? Americans import more than we export. They use the word “deficit” to make it scary. These other countries would prefer having our money and financial instruments rather than the actual goods and services they are providing to us. They are giving us actual things for the money the fed creates ex nihilo. This is not the same thing as pointing out we should have local manufacturing and reduce reliance on global supply chains. I’m not defending the Orange Doofus, just tired of seeing these debates being fought through the wrong lens.
minus-squarelemmyman@lemmy.worldlinkfedilinkarrow-up0·5 days agoA trade deficit is not, itself, a problem. That is the mainstream thinking in economics. But Trump himself has railed against the US trade deficit, so it is meaningful to point out that he is making it larger.
minus-squareWanpieserino@lemm.eelinkfedilinkarrow-up0·5 days agoWe sell you items for euros. You give us USD for our euros. You spend the euros on what we produce. We use your USDs to buy your companies. Your population continues to buy our production… Cycle continues That’s how China is buying stakes everywhere
minus-squareJustin@lemmy.jlh.namelinkfedilinkarrow-up0·5 days agoyes, but that’s caused by an excessive trade deficit. A slight trade deficit when you’re the world’s reserve currency is ideal.
minus-squareBrowseMan@sh.itjust.workslinkfedilinkarrow-up0·5 days ago“trade deficit” is a completly wrong expression. Why? Because it only count goods and not services. Services which, for a developed economy, are generaly above goods in part of GDP. https://www.bea.gov/data/gdp/gdp-industry
Why must it be balanced?
Americans import more than we export. They use the word “deficit” to make it scary.
These other countries would prefer having our money and financial instruments rather than the actual goods and services they are providing to us.
They are giving us actual things for the money the fed creates ex nihilo.
This is not the same thing as pointing out we should have local manufacturing and reduce reliance on global supply chains.
I’m not defending the Orange Doofus, just tired of seeing these debates being fought through the wrong lens.
A trade deficit is not, itself, a problem. That is the mainstream thinking in economics.
But Trump himself has railed against the US trade deficit, so it is meaningful to point out that he is making it larger.
We sell you items for euros. You give us USD for our euros. You spend the euros on what we produce.
We use your USDs to buy your companies.
Your population continues to buy our production…
Cycle continues
That’s how China is buying stakes everywhere
deleted by creator
yes, but that’s caused by an excessive trade deficit. A slight trade deficit when you’re the world’s reserve currency is ideal.
“trade deficit” is a completly wrong expression.
Why? Because it only count goods and not services. Services which, for a developed economy, are generaly above goods in part of GDP.
https://www.bea.gov/data/gdp/gdp-industry
deleted by creator