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Old 11-04-2019, 04:24 AM
 
1,466 posts, read 764,632 times
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Quote:
Originally Posted by mathjak107 View Post
trade deficit numbers make good political stories . they are the most meaningless of numbers
Mathjak107, nation's annual trade deficits did reduce their nation's annual GDPs, numbers of jobs and their payrolls more than otherwise.

Respectfully, Supposn
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Old 11-04-2019, 04:29 AM
 
75,655 posts, read 75,072,635 times
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It's just an incorrect belief.

many economists have spoken about the correlation between growth and trade deficits, but many have said faster economic growth can lead to even higher trade deficits, as a growing U.S. economy tends to demand more purchasing from abroad.

we had a huge trade surplus during the Great Depression.

two of the years with a relatively small trade deficit -- 2001 and 2009 -- were two of the three weakest years for GDP growth during that time span.

so i don't buy in to this theory
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Old 11-04-2019, 04:52 AM
 
1,466 posts, read 764,632 times
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Quote:
Originally Posted by mathjak107 View Post
It's just an incorrect belief.

many economists have spoken about the correlation between growth and trade deficits, but many have said faster economic growth can lead to even higher trade deficits, as a growing U.S. economy tends to demand more purchasing from abroad.

we had a huge trade surplus during the Great Depression.

two of the years with a relatively small trade deficit -- 2001 and 2009 -- were two of the three weakest years for GDP growth during that time span.

so i don't buy in to this theory
Mathjak107, if we light cigars with more $100 bills or use $1,000 bills, it would increase our wealth? If We would be poorer if we determined that that we couldn’t afford to burn $100 bills?

USA purchases both domestic and foreign goods within our domestic marketplaces. Isn’t reasonable to suppose sales volumes within a nation’s domestic marketplaces are sensitive to economic conditions?
I have no confidence with the reasoning of your post. Respectfully, Supposn
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Old 11-04-2019, 04:55 AM
 
75,655 posts, read 75,072,635 times
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Quote:
Originally Posted by Supposn View Post
Mathjak107, if we light cigars with more $100 bills or use $1,000 bills, it would increase our wealth? If We would be poorer if we determined that that we couldn’t afford to burn $100 bills?

USA purchases both domestic and foreign goods within our domestic marketplaces. Isn’t reasonable to suppose sales volumes within a nation’s domestic marketplaces are sensitive to economic conditions?
I have no confidence with the reasoning of your post. Respectfully, Supposn
i have no belief either that your post makes much " actual sense either " in practice
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Old 11-04-2019, 02:45 PM
 
3,666 posts, read 2,485,212 times
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Quote:
Originally Posted by Supposn View Post
Mathjak107, if we light cigars with more $100 bills or use $1,000 bills, it would increase our wealth? If We would be poorer if we determined that that we couldn’t afford to burn $100 bills?

USA purchases both domestic and foreign goods within our domestic marketplaces. Isn’t reasonable to suppose sales volumes within a nation’s domestic marketplaces are sensitive to economic conditions?
I have no confidence with the reasoning of your post. Respectfully, Supposn
I can't tell if you're being literal in this post. As a country, we can light cigars with trillion dollar bills and it wouldn't have any impact on our wealth.
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Old 11-04-2019, 04:57 PM
 
1,466 posts, read 764,632 times
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Quote:
Originally Posted by FrankMiller View Post
I can't tell if you're being literal in this post. As a country, we can light cigars with trillion dollar bills and it wouldn't have any impact on our wealth.
FrankMiller, USA’s trade deficit of goods in 2018 was in excess of 890 billion dollars. That represents a lot of lost jobs and wages. Respectfully, Supposn
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Old 11-04-2019, 05:39 PM
 
Location: Kansas City, MISSOURI
11,271 posts, read 3,403,435 times
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Let's say a country imports 8 of something and exports 10.

The 8 imports, having been imported for purposes of consumption, obviously count toward consumption. Thus, consumption of 8 is added to GDP while exports of 8 are subtracted from GDP. The net effect is 0.

The 10 exports, having been exported NOT for purposes of consumption (to the country under discussion of course), obviously do NOT count toward consumption. Thus, exports of 10 are added to GDP but the country is forsaking 10 units of consumption. In essence, 10 units of consumption are "subtracted" from GDP. The net effect, once again, is 0.

Not really even sure why they use net imports/exports in GDP calculations. I suppose you could always just look at figures for final consumption of goods.
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Old 11-04-2019, 06:55 PM
 
Location: Ohio
20,899 posts, read 14,808,128 times
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Quote:
Originally Posted by Supposn View Post
Mathjak107, nation's annual trade deficits did reduce their nation's annual GDPs, numbers of jobs and their payrolls more than otherwise.
No, wrong, it did not, and you cannot prove it did.

Repeat after me until you understand: $1 of Imports $1 of GDP.

When you come to understand that, then your mind will be expanded.
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Old 11-04-2019, 08:27 PM
 
Location: Guadalajara, MX
6,692 posts, read 3,241,688 times
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Quote:
Originally Posted by pittsflyer View Post
I am not exactly sure what you hope to gain by encouraging everyone to buy foreign goods?
Many foreign goods are the best value for my money.
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Old 11-04-2019, 09:02 PM
 
9,608 posts, read 4,215,898 times
Reputation: 1870
Quote:
Originally Posted by lieqiang View Post
Many foreign goods are the best value for my money.
In the end if we are to actively support home production of comparable goods, they need to be cheaper for our consumers. So that means less profits and lower wages for those workers. Unless we want to go whole China and subsidize those businesses or workers with newly created money.

Because as it is today, those workers are essentially SOL through their own life's choices. The best plan would be to have those displaced workers find work in other businesses that better satisfy our consumers' needs.
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