General Discussion
In reply to the discussion: Still don't think he's a used-car salesman? [View all]Hoyt
(54,770 posts)You can read this article about how economists differ on the importance of trade deficits. Obviously some think it's bad, but others feel differently.
"Economists who consider trade deficits good associate them with positive economic developments, specifically, higher levels of income, consumer confidence, and investment. They argue that trade deficits enable the United States to import capital to finance investment in productive capacity. Far from hurting employment, they believe that trade deficits financed by foreign investment in the United States help to boost U.S. employment.
Some economists see trade deficits as mere expressions of consumer preferences and as immaterial. These economists typically equate economic well being with rising consumption. If consumers want imported food, clothing, and cars, why shouldn't they buy them? That range of choices is part of a successful economy. . . . . ."
http://www.infoplease.com/cig/economics/trade-deficits-bad-good.html