CDZ U.S. and Mexico trade balance by year

Discussion in 'Clean Debate Zone' started by RandomPoster, Nov 7, 2018.

  1. RandomPoster
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    RandomPoster VIP Member

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    Year : Millions of dollars (negative means deficit)

    1994 : 1,349.8 positive
    1995 : -15,808.3 negative
    2000 : -24,577.3 negative
    2005: -49,861.0 negative
    2010: -66,321.0 negative
    2015: -59,973.2 negative
    2017: -70,952.9 negative

    I wonder if NAFTA had anything to do with this. How does this look beneficial to the U.S.?
     
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  2. BuckToothMoron
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    BuckToothMoron Gold Member

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    The better question- how is it more favorable to send out more than you take in, in other words, how is a trade surplus beneficial? People who only listen to politicians and don’t study economics believe the country would be better if we sent more of what we make to other countries rather than have more of what they produce sent to us. Milton Friedman does an excellent job of explaining why a deficit is actually the preferred side of trade. I suggest you take a listen.

     
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  3. RandomPoster
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    RandomPoster VIP Member

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    How is it favorable to send out more than you take in? Selling enriches the seller and makes the buyer poorer on account of the buyer's weakness and desire for comfort. The buyer has made a choice to give his money to a salesman for a product that may or may not be worth the price. Stockpiling money pays off. If you want to own the world, you do not spend your money on cheap foreign products you do not need.
     
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  4. BuckToothMoron
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    BuckToothMoron Gold Member

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    Ok, you haven’t study economics at all, have you? You have a trade deficit with the grocery store. You give them your money for food. If that is bad for you, why don’t you start growing vegetables in your yard and sell them to create a surplus? Markets want to be efficient. It’s more efficient for you to keep your job, earn your paycheck and have a trade deficit with the grocery store, rather than spend time growing your own food.

    Just because you are a Republican doesn’t mean you can’t think for yourself. Trump is not always right, just because Pelosi is always wrong. I urge you to read more about trade deficits and the economies of countries which have them. Trade deficits are not the economic booggie man.
     
  5. Toronado3800
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    So we get cell phones from China, they get $'s to build infrastructure.

    Next we will get cars from China. Then they'll use $'s to build the world's best space force.

    If it doesn't show I disagree with Milton and find your insinuation that anyone who disagrees does no agree is ignorant, distasteful.
     
  6. BuckToothMoron
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    BuckToothMoron Gold Member

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    You are a simpleton, is that better than being ignorant? What military forces out there rival the US? We have a trade deficit and the best military in the world. We spend more on our military than the next 7 countries combined. You’re one of those guys who was screaming in the 1980’s that Japan was going to own this country. Yeah, I know your type.

    29368524-8AAE-4906-8C87-FD5067D556E0.png
     
  7. RandomPoster
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    RandomPoster VIP Member

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    I understand economics just fine. I have never purchased anything on credit. I pay for everything up front. I didn't buy my house until I could pay for it. No financing. No interest. I could have purchased a much larger home, except I don't need it. Back in my twenties, while making nearly 6 figures a year, I rented out a filthy shithole apartment with horse hair insulation in the walls where I needed blankets in my living room during Minnesota winters until I could stockpile 150,000 cash for my house. I have saved money by refusing to go to a doctor or chiropractor. I live far below my means and stockpile MY money. Even now, I'm not above utilizing resources such as free food shelters. There's no rule that says when you make X dollars a year, you can't be frugal.

    As far as food and defense are concerned, we have to eat and we have to spend money on defense because we have to defend ourselves. We invest in a military because that is our economic future. That is how we should negotiate trade deals and overall economic issues.

    We should not have trade deficits and we should not be in debt.
     
  8. Toronado3800
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    Ok name caller.

    Who bought their military on deficit spending? I can make 20k a year and own a mansion by your accounting.

    If you didn't care about Obama's deficit, that is fine. I wasn't freaking out either but I know the interest is there and the effect of higher rates on future borrowing.

    So yeah, why does the grocery store sell me things? To get my money?
     
  9. BuckToothMoron
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    BuckToothMoron Gold Member

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    It’s sounds to me like you understand your economic situation perfectly, and are an extremely (rightfully so, probably) proud person. But you have not demonstrated any knowledge of actually economics, or investing and accounting for that matter. I predict you will never be poor, but if you refuse to take on debt (leverage), you will never be rich either.
     
  10. BuckToothMoron
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    Hold on, we are talking about a trade deficit with Mexico and other countries. Not the deficit spending of the federal government. Do you not understand the difference between the two? Countries with a trade deficits mean the people are making enough money to buy things from other countries. Why do you think corporate leaders are concerned about this trade war? It will hurt the economy! Here’s a good article about that very topic-Trade Deficit Is Most Meaningless Economic Indicator Of All | Investor's Business Daily

    A trade deficit is a sign that Americans have purchasing power and are creating demand for products. When the economy is in a downturn, the trade deficit shrinks. In 2006, for example, the trade deficit was $762 billion and the unemployment rate was 4.9%. By the end of 2009, the trade deficit declined to $384 billion, and the unemployment rate peaked at 10%.
     

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