The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?
In: 436
No. When u have a deficit it is not like u don’t get anything out of it. U get stuff like cars and food etc.
Also America is an service based country. U provide services like banking, software, support, logistics experience etc. That is not counted as physical trade because u aren’t trading something physical.
Ultimately having a deficit is not a big deal if the country handles it correctly. It can also be a disaster if you are a export surplus country like venezuela and when the price of oil drops. Or u suffer from Dutch disease.
Ultimately sound fiscal policy is far more important then if u run a deficit or not
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