Quote:
Originally Posted by Clocker
No, according to this chart, the trade deficit and net worth tend to move in the same direction. While that does not necessarily show a causal relation, it does show that trade deficits are not harmful to Americans, something that advocates of tariffs claim but cannot prove.
If we had no trade deficit, we would be paying higher prices for most of the manufactured products that we buy.
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So while net household worth was going up while trade deficit has somewhat stabilized/decreased in the last 5 years, you summarize we should keep up a trade deficit?
What would actually happen if we had a trade deficit of lower numbers. Hell, even a net zero. What would happen?
Problem is, you don't know, and thus you keep proposing a trade deficit as being a "good thing" because it is what we have always done.
There really are no real world statistics to support either side, other than, this is what we have always done.
