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09-06-2018, 09:17 AM
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#2
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Quote:
Originally Posted by jimmyb
Bad News for US Trade Deficit
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Why is it bad news? A trade deficit is a sign of a strong economy and a prosperous country. It is also an indication that the country is attractive for foreign investors.
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09-06-2018, 09:25 AM
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#3
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Quote:
Originally Posted by Clocker
Why is it bad news? A trade deficit is a sign of a strong economy and a prosperous country. It is also an indication that the country is attractive for foreign investors.
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If it is such a good thing, why doesn't anyone else want to trade places with the USA on trade imbalances?
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09-06-2018, 09:34 AM
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#4
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The Voice of Reason!
Join Date: Mar 2001
Location: Canandaigua, New york
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A good question.
Like, if this country is so bad Europe puts us to shame and CUBA has better health care, why is everyone sneaking in HERE and not Cuba?
When South Africa had Apartheid, they had problems with people sneaking IN, not OUT.
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09-06-2018, 09:39 AM
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#5
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Join Date: Oct 2004
Posts: 14,036
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Quote:
Originally Posted by Tom
A good question.
Like, if this country is so bad Europe puts us to shame and CUBA has better health care, why is everyone sneaking in HERE and not Cuba?
When South Africa had Apartheid, they had problems with people sneaking IN, not OUT.
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Because Trade Deficits are a sign of wealth...?
Thanks for making the point of those of us not concerned about Trade Deficits.
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09-06-2018, 09:44 AM
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#6
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Better re-read that.
I said NOTHING about trade deficits.
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09-06-2018, 09:45 AM
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#7
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Quote:
Originally Posted by tucker6
If it is such a good thing, why doesn't anyone else want to trade places with the USA on trade imbalances?
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The top ten countries with the largest trade deficits. Ours is the biggest because we have the largest economy. Are all these countries as bad off as the trade deficit Chicken Littles claim we are? How can the Chicken Littles in this country brag about how great the economy is but whine about what terrible shape we are in because of the trade deficit? Perhaps because of economic illiteracy about trade and the economy?
Quote:
1 United States 462,000 2017 EST.
2 United Kingdom 91,420 2017 EST.
3 Canada 55,570 2017 EST.
4 Turkey 38,950 2017 EST.
5 India 33,680 2017 EST.
6 Brazil 28,990 2017 EST.
7 France 28,920 2017 EST.
8 Algeria 22,870 2017 EST.
9 Argentina 22,130 2017 EST.
10 Australia 21,680 2017 EST.
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https://en.wikipedia.org/wiki/List_o...ccount_balance
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09-06-2018, 09:49 AM
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#8
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Quote:
Originally Posted by Tom
Better re-read that.
I said NOTHING about trade deficits.
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I can only assume you said Tucker had a good question regarding imbalances in trade.
Its not a good question because as you pointed out people actively try to come here illegally even though they are so bad.
The trade talk is just one glaring example of this President having really no idea what he is talking about. The standard defense of his supporters is that he's talked about doing it for decades... that's fine... he's just been wrong for decades.
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09-06-2018, 10:29 AM
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#9
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The Voice of Reason!
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Whatever you think I said......have at it.
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09-06-2018, 10:38 AM
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#10
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Quote:
Originally Posted by Tom
Whatever you think I said......have at it.
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Its hard to know with you Tom...
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09-06-2018, 10:56 AM
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#11
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Maybe I'll tweet about it later.
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09-06-2018, 10:59 AM
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#12
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Quote:
Originally Posted by Clocker
The top ten countries with the largest trade deficits. Ours is the biggest because we have the largest economy. Are all these countries as bad off as the trade deficit Chicken Littles claim we are? How can the Chicken Littles in this country brag about how great the economy is but whine about what terrible shape we are in because of the trade deficit? Perhaps because of economic illiteracy about trade and the economy?
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Allow me to ask the question in a different way...
If deficits are such a good thing, why doesn't anyone want to trade places with the USA on trade imbalances, such as China? Why aren't the Chinese starting a trade war with us so that they can get into negative trade balance territory? After all, negative is the desired outcome, right.
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09-06-2018, 12:11 PM
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#13
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Quote:
Originally Posted by tucker6
If deficits are such a good thing, why doesn't anyone want to trade places with the USA on trade imbalances, such as China? Why aren't the Chinese starting a trade war with us so that they can get into negative trade balance territory? After all, negative is the desired outcome, right.
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Negative is not the desired outcome in and of itself. It depends on the the state of an economy and its composition. You will note that the high trade-deficit countries are largely well developed and relatively wealthy.
We are becoming more and more a service economy, and because of our evolved and successful status, a consumer economy. China is still a developing economy, based much more on production and investment rather than consumption.
China is still a trade surplus country because it is building a more capital intensive economy, and needs to sell more "stuff" in order to build up its internal investment. Because the US is an advanced service and consumer society, it is able to attract more foreign investment, like Toyota and BMW.
China needs to sell more than it buys in order to build its economy. We have the luxury of consuming more than we sell to others because that consumption attracts foreign investment. China is growing in that direction, which is why companies like GM are investing in plant and equipment over there.
We can have a strong economy with a trade deficit because that deficit is off-set by an equal capital surplus. We have consumer spending dollars flowing out of the country, but investment dollars flowing in, boosting the economy and creating jobs.
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09-06-2018, 02:28 PM
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#14
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Quintessential guru
Join Date: Mar 2001
Posts: 11,254
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Quote:
Originally Posted by Clocker
Negative is not the desired outcome in and of itself. It depends on the the state of an economy and its composition. You will note that the high trade-deficit countries are largely well developed and relatively wealthy.
We are becoming more and more a service economy, and because of our evolved and successful status, a consumer economy. China is still a developing economy, based much more on production and investment rather than consumption.
China is still a trade surplus country because it is building a more capital intensive economy, and needs to sell more "stuff" in order to build up its internal investment. Because the US is an advanced service and consumer society, it is able to attract more foreign investment, like Toyota and BMW.
China needs to sell more than it buys in order to build its economy. We have the luxury of consuming more than we sell to others because that consumption attracts foreign investment. China is growing in that direction, which is why companies like GM are investing in plant and equipment over there.
We can have a strong economy with a trade deficit because that deficit is off-set by an equal capital surplus. We have consumer spending dollars flowing out of the country, but investment dollars flowing in, boosting the economy and creating jobs.
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Love the logic. You build wealth by having a trade surplus, based on manufacturing i.e. production. China is building wealth. Fact established wealth is built through trade surplus and manufacturing.
Where is this wealth coming from? Is it being transferred from the countries with trade deficits to the countries, like China, with trade surpluses?
According to some economic logic promoted here, the answer is resounding no. Wealth must not be a sum zero game, there is unlimited wealth. Countries build wealth without taking wealth from other countries. Absurd!
If one country is building wealth another country is losing wealth, bottom line. See the fall of the Roman empire related to loss of wealth. Unlimited wealth is an economic lie to foster the transfer of wealth from one populace to another.
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09-06-2018, 02:30 PM
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#15
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Quintessential guru
Join Date: Mar 2001
Posts: 11,254
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Quote:
Originally Posted by tucker6
Allow me to ask the question in a different way...
If deficits are such a good thing, why doesn't anyone want to trade places with the USA on trade imbalances, such as China? Why aren't the Chinese starting a trade war with us so that they can get into negative trade balance territory? After all, negative is the desired outcome, right.
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The correct answer, given by Clocker, is China is building wealth and China knows it would lose wealth if it pursued a trade deficit policy. See Imperialism.
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