Quote:
Originally Posted by Montrealcorp
Trade deficit isn’t necessarily bad .
It depends the level of debt you have or generate , the currency u have and demographic .
For example the US has a trade deficit in goods but is an exporter of currency (US$) ..
MontrealCorp, you posted "[a nation's] trade deficit isn’t necessarily bad. It depends [on] the level of debt you have or generate, … ”. to some extent we're in agreement.
But (Unless the nation's experienced effectively “full employment”),
annual trade deficits were always net economically detrimental their nation's economy.
Are chronic annual trade deficits (such as the USA's) unsustainable? (As you posted), it depends [on] the level of debt being generated. A large lake being filled by streams, and emptied by a river leading to the sea, may never run dry, dependent upon the sustained rates of running water attributable to the streams and the river. Regardless of sustainability, annual trade deficits are economically net detrimental to their nation.
If annual trade deficits are necessary for the nation to survive,
(regardless of the economic loses), the nation must tolerate the economic loss if it otherwise lacks the fuel, or the armament, or the food, or the medicine it needs for survival. But otherwise, annual trade deficits are always net economically detrimental the nation's economy.
MontrealCorp, you went on to post, “Trade deficit isn’t necessarily bad. It depends [on] the level … the currency the nation [has and its] demographic. For example the US has a trade deficit in goods but is an exporter of currency (US$)”. Currency and demographics?
Excluding the fore mentioned exception, due to a nation's annual trade deficit, their GDP was less than otherwise. Thus, their number of jobs and their wages were somewhat less than otherwise. “Currencies” aren't products subject to consideration within the calculation of gross domestic products, (GDPs).
[No one but I mention the proposed trade policy species of Import Certificates as described in Wikipedia's article entitled, “Import Certificates”. That policy is not applicable to the value of any mineral material included within a list of scarce or precious minerals. For the purposes of that specie of Import certificates drafted laws and regulations, assessment of product's values are reduced by the approximate values of such materials integral to globally traded products. For example, crude oil is very likely to be one of the items on that list.
Have you read or looked at that Wikipedia article?]
Respectfully, Supposn
Last edited by Supposn; 11-11-2023 at 11:21 PM.