Why trade deficits are not a sign of economic trouble, and trade surpluses are not necessarily a sign of economic health.
Americans are no more harmed by the trade deficit with Germany than you are by your trade deficit with Kroger.
Trade deficits are not caused by tariffs or other protectionist policies, and neither are trade surpluses.
Not only are trade deficits not driven mainly by trade policy, they are not really driven by consumer behavior, either.
Ironically, the corporate tax reform that President Trump is rightly proud of may contribute to higher trade deficits by making the United States a more attractive place to invest.
Trade deficits are not a sign of economic trouble, and trade surpluses are not necessarily a sign of economic health.
Worse, the Trump administration is doing so for no good reason, because it doesn't really understand trade deficits.
https://www.nationalreview.com/2018/07/trump-tariff-policy-trade-deficits-not-a-sign-of-economic-trouble/
Americans are no more harmed by the trade deficit with Germany than you are by your trade deficit with Kroger.
Trade deficits are not caused by tariffs or other protectionist policies, and neither are trade surpluses.
Not only are trade deficits not driven mainly by trade policy, they are not really driven by consumer behavior, either.
Ironically, the corporate tax reform that President Trump is rightly proud of may contribute to higher trade deficits by making the United States a more attractive place to invest.
Trade deficits are not a sign of economic trouble, and trade surpluses are not necessarily a sign of economic health.
Worse, the Trump administration is doing so for no good reason, because it doesn't really understand trade deficits.
https://www.nationalreview.com/2018/07/trump-tariff-policy-trade-deficits-not-a-sign-of-economic-trouble/
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