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re: What tariffs did France or the EU have on US imports before Trump?
Posted on 6/9/18 at 5:43 pm to Shiftyplus1
Posted on 6/9/18 at 5:43 pm to Shiftyplus1
quote:
How can the seeming paradox of faster growth and expanding trade deficits be explained? The evidence certainly does not suggest that an expanding trade deficit somehow fuels more rapid economic growth or that a trade deficit is necessarily good for the overall economy. More plausibly, causation flows from economic growth to the trade balance. An expanding economy increases demand not only for domestic production but also for imports. It also promotes more domestic investment as businesses seek to meet rising demand and capitalize on new investment opportunities.
This is a favorite argument for deficits. We buy goods, they make capital investments so the balance sheet is a wash.
The problem is, we buy their goods and they take that profit and invest in capital, our companies, real estate, etc. Eventually they own US and the USA.
Its fine if they invest their own capital, quite another if they take our money and buy the family farm...but the argument makes good clickbait.
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