When any customer buys more from any business than the business buys from the customer, the customer has a trade deficit with the business.
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Trade deficits do not mean that anyone is taking advantage of anyone else. The grocery store will have a trade deficit with a farmer or supplier, just as you have a trade deficit with the grocery store.
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This basic economic concept applies to international transactions just as it applies to neighborhood transactions.
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Trade deficits are a feature, not a bug, of a system of voluntary exchange. Only in a (theoretical but not possible) system of total government control and central planning could trade deficits be eliminated—and that would be a world of universal slavery and extreme poverty.
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Luckily with free markets, there's always a better, different grocery store.
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You mean like how the US subsidises cotton and dumps it in developing markets, forcing other cotton producers around the world to struggle immensely?
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The fact is that the suffering of the manufacturing sector has more to do with Americans wanting to buy everything super cheap. Americans would not pay the prices that goods would cost if they were made in the US. That is a US problem, not a "the world are cheaters" problem.
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The US has never manufactured more than they do now. The jobs are just automated. They’re not coming back. Just like we aren’t all farmers or miners.
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Well this is exactly my point. Why cry for jobs that are never coming back. Value the workforce you have now!
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To solve this: place a tax on yourself for buying things from the grocery store to encourage yourself to grow your own food in a garden.
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Or make your own clothes, or build your own smart phone.
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Comparative advantage. Google it.
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The US is not a consumer to the Chinese grocery store. We have a reciprocal trading relationship. They slap tariffs on our good to make themselves more competitive. We need to reciprocate in kind.
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Tariffs are taxes. Punishing ones own citizens because other countries punish theirs makes no sense. -Thomas Sowell
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A booming US steel industry will bring in lots of US jobs, if we make enough steel ourselves, the prices will be low and everyone will benefit.
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if we protect our steel with tariffs our steel will be high. steel jobs have been lost because of automation and wont come back. we do have huge manufacturing segment that employs 6.5 mil that need some imports of steel.
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And the "artificial jobs" that go back to steel because of the tariffs will take assets(man power) away from other sectors that are actually creating real value that don't need to be propped up. It starts a nasty cycle.
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you sir get a gold star!
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Must be because I'm a baseball guy.
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