Categories: world

Good news, the trade deficit grew

P residents Trump promised to lower the trade deficit, but it hit 10 years high last year. But, given that we are not subscribing to the President's zero-sum trading strategy, our reaction to the news is to bring a glass to the Trump economy. America exported $ 2.5 billion in goods and services and imported $ 3.1 billion, resulting in a deficit of $ 621 billion, the largest since 2008. Then the deficit exceeded $ 700 billion before falling to below $ 400 million. dollars 2009. It should tell you something. Remember what happened in 2009? The economy fell off a cliff. A low trade deficit often means that the public feels too poor to buy goods and services. A growing trade deficit generally means that the economy is humming and consumers' trade books are full enough to be able to buy things they want but can hurry up in more strained times. It also means that companies invest by picking up equipment and parts, some of which are made abroad. Trump has always hated the trade deficit, which seems to assume they are revealing a wealth from the country. Having lived and driven into New York's real estate development, the president tends to see business deals as transactions where one party loses as much as the other party wins. When applying this for trading, it should be obvious that it has no meaning, because it looks down to believe that the one who gets more goods and services loses,…

P residents Trump promised to lower the trade deficit, but it hit 10 years high last year. But, given that we are not subscribing to the President’s zero-sum trading strategy, our reaction to the news is to bring a glass to the Trump economy.

America exported $ 2.5 billion in goods and services and imported $ 3.1 billion, resulting in a deficit of $ 621 billion, the largest since 2008. Then the deficit exceeded $ 700 billion before falling to below $ 400 million. dollars 2009. It should tell you something. Remember what happened in 2009? The economy fell off a cliff. A low trade deficit often means that the public feels too poor to buy goods and services.

A growing trade deficit generally means that the economy is humming and consumers’ trade books are full enough to be able to buy things they want but can hurry up in more strained times. It also means that companies invest by picking up equipment and parts, some of which are made abroad.

Trump has always hated the trade deficit, which seems to assume they are revealing a wealth from the country. Having lived and driven into New York’s real estate development, the president tends to see business deals as transactions where one party loses as much as the other party wins. When applying this for trading, it should be obvious that it has no meaning, because it looks down to believe that the one who gets more goods and services loses, and the one who gets more money wins.

This is wrong for many reasons. For one thing, trade deficits are not budget deficits. Even imports are not bad things.

Trump has the right to care about the manufacturing industry. World War II manufacturing jobs up to the last decades were excellent sources of wealth and stability for the middle class and working class. The disappearance of these jobs, which often disappeared for foreign competition, created a real cost for much of the country.

But the manufacturing does not go away. As part of the economy, manufacturing is stable. Last year saw a large increase in our manufacturing and export. The Federal Reserve reported Wednesday’s “light to moderate” increase in production in almost the whole country. Manufacturers are desperate for labor at the moment. This is not the case when they suffer.

This increase in production is growing in exports. US $ 2.5 billion in exports is equivalent to an increase of 6.3 percent from 201

7. That’s good.

Imports of 7.5 percent are also good. It reflects some global trends as a stronger dollar and economic slowdown in other countries, but it also reflects healthy consumption and investment by US companies and households.

Trump’s media opponents suggest that the deficit news is a “blow to Trump,” and it is true to the extent that Trump, by using battles and other aggressive war tactics, intends to lower the trade deficit. Thankfully, this misguided effort has not succeeded, largely because trade policy has less impact on the trade balance than most commentators and politicians assume. The trade balances are much more determined by underlying economic factors. And here’s the most important underlying factor: America is richer than it was under President Barack Obama, and so imports more.

So Trump gets some of the debt – that is, credit – for the rising trade deficit. Deregulation and tax cuts, both individuals and businesses, have stimulated economic investment and growth. The growing economy is creating a growing trade deficit.

We hope that President Trump will not get tired of this winning

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