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Why should we care what the trade deficit is?
by navait 9y ago
Why should we care what the trade deficit is?
- fspeech 9y agoI don't know, maybe because it has the word "deficit" in it. Maybe we should rename it "dollar winnings" or "greenback surpluses". I am pretty sure the trade deficit is driven by the desire of people outside of US to own dollars and dollar denominated assets. As long as US has the strongest military and is seen as the haven for the rich people around the world to park their earnings the trade deficit will always be there, unless capital control is imposed.
- selectodude 9y agoThe trade deficit implies that somebody wants to give us actual goods in return for pieces of cotton.
- jganetsk 9y agoBecause private sector deficits lead to recessions: https://en.wikipedia.org/wiki/Sectoral_balances https://en.wikipedia.org/wiki/Sectoral_balances