The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?

Question

The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?

In: 436

Answer 1

Everybody has a trade deficit with somebody. You have a massive trade deficit with your grocery store, for example. You (likely) don’t produce much of anything they sell and you are far better off because of it. Same goes for the electronics store, clothing stores, etc.
The things we don’t produce because they are produced more cheaply elsewhere frees up labor to produce other goods and services, many of which are worth even more than the goods we don’t produce.