4 ms·

I've never understood the fixation some people have on the trade deficit. Why is a large trade deficit a concern to you? Does that influence the Gini coefficien

I've never understood the fixation some people have on the trade deficit. Why is a large trade deficit a concern to you? Does that influence the Gini coefficient in the US? Apologies if I misunderstood your comment.

eberkund 5y ago
A large trade deficit arguably has a large impact on the Gini coefficient. A continuous and growing trade deficit is funded with currency expansion, which inflates asset prices. In other words: the rich get richer.
gogopuppygogo 5y ago
It’s building the economy for communist slave labor nations that seek to grow their military worldwide. Sounds wonderful if you like communism. To me, as someone who doesn’t, that sounds bad. Therefore we should be trying to end the trade deficit ASAP.
- anticodon 5y ago
  USA cannot end the trade deficit. USA is a parasite on the world economy: it prints dollars and buys everything it needs with a pieces of paper (or zeros and ones in some bank computer). Unlike almost all other countries in the world, where they have to work hard with their hands and brains to get something. USA printed more trillions only in the last year, that China - country that provides all the world, including US, with clothes, electronics and just about everything else - managed to save in the last 20 years. This position is incredibly profitable for the USA, but it needs the largest military power to maintain status quo, because all the other countries understand they're being ripped off. And this military power immediately kills anyone who renounce use of dollar for trade (see Iraq, Libya). If USA will end trade deficit somehow, it would mean that it would be on par with other countries, and population of USA would have to reduce its consumption of goods and resources by 15-20x. It will be the end of USA, most probably civil war and collapse.

4 ms·

I've never understood the fixation some people have on the trade deficit. Why is a large trade deficit a concern to you? Does that influence the Gini coefficien

by aabaker99 5y ago

eberkund 5y ago
A large trade deficit arguably has a large impact on the Gini coefficient. A continuous and growing trade deficit is funded with currency expansion, which inflates asset prices. In other words: the rich get richer.
gogopuppygogo 5y ago
It’s building the economy for communist slave labor nations that seek to grow their military worldwide. Sounds wonderful if you like communism. To me, as someone who doesn’t, that sounds bad. Therefore we should be trying to end the trade deficit ASAP.
- anticodon 5y ago
  USA cannot end the trade deficit. USA is a parasite on the world economy: it prints dollars and buys everything it needs with a pieces of paper (or zeros and ones in some bank computer). Unlike almost all other countries in the world, where they have to work hard with their hands and brains to get something. USA printed more trillions only in the last year, that China - country that provides all the world, including US, with clothes, electronics and just about everything else - managed to save in the last 20 years. This position is incredibly profitable for the USA, but it needs the largest military power to maintain status quo, because all the other countries understand they're being ripped off. And this military power immediately kills anyone who renounce use of dollar for trade (see Iraq, Libya). If USA will end trade deficit somehow, it would mean that it would be on par with other countries, and population of USA would have to reduce its consumption of goods and resources by 15-20x. It will be the end of USA, most probably civil war and collapse.