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exporting more means you're earning relatively more money that can then be spent on assets. All spending is either on assets (property, equities, land, etc) or
by pascalxus 7y ago
exporting more means you're earning relatively more money that can then be spent on assets. All spending is either on assets (property, equities, land, etc) or liabilities (cars, toys, clothes, etc). Assets are the key to wealth because assets make more money whereas liabilities cost you to loose money. Wealth begets more wealth because it grows based on compounding effects.
- ma2rten 7y agoThis makes sense for individuals, but how does this work for countries? Let's say the US were to export more stuff to China. Now American companies have more money to buy assets. If they use this money to buy assets in the US it would just cause inflation. The land prices go up, but the total amount of land owned stays the same. If they use the money to buy land in China, I am not sure that it would have much impact on the US economy.