clacke: seeking 🇸🇪🇭🇰💙💛 on Nostr: The trade deficit is partly caused by shifting production to countries without costly ...
The trade deficit is partly caused by shifting production to countries without costly environmental protections that also have low labor costs.
Linux Walt (@lnxw37j1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (nprofile…mc0a) Yes, that's why the US is doing. But why can they do it?
You can't keep having a trade deficit decade after decade unless the one you are trading with is allowing your economy to borrow more and more money without repaying it, from your banks, from your central bank or from abroad. It's mathematically impossible.
It is not necessarily unsustainable for a given time period. As long as your economy is growing at pace with your borrowing, you're still solvent.
Taking production back home may be good for other reasons like national resilience, national security, etc, but the rhetoric is pretending that it's for some macroeconomic reason without pointing to any specific issue except "trade deficit bad". "Fixing" it will lead to a slowdown of the US economy as domestic prices go up.
Linux Walt (@lnxw37j1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (nprofile…mc0a) Yes, that's why the US is doing. But why can they do it?
You can't keep having a trade deficit decade after decade unless the one you are trading with is allowing your economy to borrow more and more money without repaying it, from your banks, from your central bank or from abroad. It's mathematically impossible.
It is not necessarily unsustainable for a given time period. As long as your economy is growing at pace with your borrowing, you're still solvent.
Taking production back home may be good for other reasons like national resilience, national security, etc, but the rhetoric is pretending that it's for some macroeconomic reason without pointing to any specific issue except "trade deficit bad". "Fixing" it will lead to a slowdown of the US economy as domestic prices go up.