The US has had a trade deficit since 1975, so is the US trade deficit really such a bad thing?
In: 436
The point of trade is to exchange things you have but don’t need, for things you need but don’t have.
It doesn’t really matter if you get more back than you traded. It would, if you were a trader, and literally all you did was buy and sell things, but a national economy also produces goods and services, and so long as the production of goods and services outstrips consumption + deficit, the economy will still grow.
You could try reduce the deficit by imposing trade restrictions, but instead of making things better, you’re as likely to eliminate foreign customers, thereby meaning internal productivity drops, and the economy actually gets worse. Oh, and since unwanted financial services cant be used as computer chips, you’ve also got shortages.
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