Quote:
Originally Posted by formula_2002
and cheaper clothing, fruits and vegetables etc..
See where the Trumps make their goods and services..
It's always about the money. you find a way to make something here in the USA, that beats the price of imported goods and you will have success.
I remember when NAFTA first started, my thought was we should send our union leaders to these NAFTA countries and unionized their work force..
WHAT A
|
The problem is that the cheaper goods we get in return are not the equivalent of what we are sending out. That's why it's a bad deal for he country as a whole even though Wall St and some consumers benefit.
Let's say my family and your family are trading.
Let's say we bought 10K worth goods from you, you bought 5K from from us, and by buying from you we saved 1K.
It should be clear that over time you are going to be getting richer at a rate of 5K per year faster because of all the money flowing from my family to yours.
Now let's say instead of trading with your family we started making that stuff ourselves and it cost us an extra 1K. Yeah, it cost us an extra 1k, but we kept the 5K inside our family.
That's sort of what happens when you run trade deficits.
Some people in the US are benefiting from cheaper goods.
Some people in the US are benefiting from higher profits.
But overall wealth and jobs are shifting overseas.