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How does it not make sense? When you export things to other countries you expect something back in return of equal value, unless you're just doing it for chari
by mothballed 9mo ago
How does it not make sense? When you export things to other countries you expect something back in return of equal value, unless you're just doing it for charity. On a world stage the US imports more than it exports.
Obviously all the countries not choosing to settle it by balancing the imports with equally valued exports are still not just donating that difference away, so it must be going somewhere.
What did you think that must be? The only option is they must have kept that capital in the US if they didn't export the balance of their trade back out. Kept it in the US because for whatever reason they decided to invest it there rather than get goods/services in immediate exchange or invest in their own country. By increasing the trade deficit you're literally going stronger in on investing in what America is doing.
- grim_io 9mo agoDoesn't your argument reveal the irrationality of the administrations’ tariff policy? Yes, countries do not export goods as charity to the US. They get to hodl the Dollar. This huge demand for the Dollar has made it possible to print so many of them and still keep the value, giving the US a big advantage over any other currency. But who is responsible for the trade deficit anyway? It's the US consumer, of course. No one is forcing them to buy all this stuff. Now imagine yourself in the shoes of a poor country exporting textiles to the US. What are you to do to make the US administration happy? You can't afford American products, so your only choice is to stop selling to the US? How does that make any sense or help anyone?
- deleted 9mo ago[deleted]
- direwolf20 9mo agomothballed's comment was probably flagged because they used the R slur
- mothballed 9mo ago[flagged]
- youngtaff 9mo agoIt's not just about physical goods, the rest of the world buys American services and it's debt