4 ms·
When talking about trade deficits, I always like to remember what one of my econ professors said about treating them as scorecards, which is usually misleading.
by paloaltokid 10y ago
When talking about trade deficits, I always like to remember what one of my econ professors said about treating them as scorecards, which is usually misleading.
Exports are things we sell, imports are things we get to keep.
- philhartmanonic 10y agoFor real. Any time I hear popular macroeconomic metrics, I become deeply skeptical of whether there's gonna be anything worth listening to. It's like taking your temperature. Sure, it could mean you're going to die. Could also mean you've got a healthy immune system fighting off a disease. Could mean it's time to stop wanking in the sauna.
- mrb 10y ago"imports are things we get to keep." This is not true at all. Food is eaten. Energy gets used up. Electronics depreciate (very) quickly. Most physical goods wear out. Etc. The only imports you get to "keep" long term are a few things like gold, cement, etc.
- Neeek 10y agoI thought the sentiment was that export =/= loss, less the idea that you can keep imports forever.
- lottin 10y agoAnother way to view it is as the difference between a country's production and consumption. A trade deficit implies that the country consumes more than it produces, while a trade surplus is the other way round.