Trump Announces New Tariffs On Chinese Imports

[BmorePat87]

(03-26-2018, 10:09 AM)Benton Wrote: The problem is you can’t just be consumers without having something you produce. That’s just dollars flowing out. We have to make something, be it innovation, manufactured goods, etc. since the 80s we’ve steadily dropped off in what we sell to other countries... outside of old munitions. And having garage sale prices on weapons isn’t doing much for our economy.

(03-26-2018, 10:28 AM)Au165 Wrote: Here is a good example explaining the "Balance of Payments" and why the trade deficit doesn't really exist, at least in the way most people believe it does. Basically, that "deficit" is what drives foreign investment in the U.S. . We very narrowly view it in terms of goods but the influx of money in the finance side is still money returning to our economy. 

http://www.aei.org/publication/worried-about-trade-deficits-dont-they-are-job-generating-foreign-investment-surpluses-for-a-better-america/

Au explains it well. We need to stop thinking of selling tangible products as the only metric of trade and growth. Investments, services, and intangible products are important too.