Trade Deficits, Boon or Bust?

[RickeyM]

I admit that I don't know economics. I understand what a trade deficit is but is it as bad as what Felon says? Know I take anything he says with several grains of salt. Also which is better, levying teriffs on imports or incentivizing producers to produce goods here?

[Human]

Originally Posted by RickeyM

I admit that I don't know economics. I understand what a trade deficit is but is it as bad as what Felon says? Know I take anything he says with several grains of salt. Also which is better, levying teriffs on imports or incentivizing producers to produce goods here?

This all could have been avoided by taxing corporations that offshored manufacturing.

[Noogies]

I know this: a $65B trade deficit is not a $200B "subsidy"and does not entitle the country maintaining the deficit to invade the country with whom they maintain it.

[Oerets]

Living beyond ones means sort of...


Buying more then you produce in revenue.


Right?

[Noogies]

Originally Posted by Oerets

Living beyond ones means sort of...

Buying more then you produce in revenue. Right?

Wrong. It's a simple trade imbalance. One country sells more products (or services -- they count too) to another country than they purchase from that country. It can arise as a result of a weak manufacturing sector, variation in exchange rate, lack of production of raw materials, inadequately trained workforce or any one of a number of other circumstances.

Historically, tariffs have never been the answer.

[Noogies]

Originally Posted by RickeyM

... which is better, levying teriffs on imports or incentivizing producers to produce goods here?

We may never know, because once your feckless leader sewers your economy with Plan A, your country may not have the resources remaining to try Plan B, which may well have been viable.

[Oerets]

Originally Posted by Noogies

Wrong. It's a simple trade imbalance. One country sells more products (or services -- they count too) to another country than they purchase from that country. It can arise as a result of a weak manufacturing sector, variation in exchange rate, lack of production of raw materials, inadequately trained workforce or any one of a number of other circumstances.

Historically, tariffs have never been the answer.

OK thanks.

Was trying to think of a simple answer and got it wrong.


Trying to equate or simplify it to a household term easier to understand.

Agree tariffs are bad, were intended to be used to protect a local industry over imported. When there is none local anymore.... outsourced, moved for profit in the past...

Also agree tax those who have profited from these and other advantages over the years. All at the expense of the rest of the nation.

[Dondilion]

A nation that does not produce its basic needs has lost its sovereignty.

[bobabode]

Originally Posted by dondilion

a nation that does not produce its basic needs has lost its sovereignty.

tldr... Is Ruzzia still a country or just a satrapy of Lil' Kim and his uncle Xi? (grin)

[bobabode]

Originally Posted by Dondilion

A nation that does not produce its basic needs has lost its sovereignty.

Meanwhile your guiding light, Leon Muskrabbit has declared that Americans in need of a hand up are "parasites". Lovely...