Annual Trade deficits are always net detrimental to their nation's economies.
Except when a nation's workers are effectively experiencing “fullemployment”, annual trade deficits are otherwise ALWAYS net detrimental to families dependent upon wages, and entities sensitiveto the financial conditions of that substantial segment of thenation's population.
Rather than pure “free trade”, I'm among those who are aware of andadvocate USA adopt the “Import Certificates” policy as described within the link, Import certificates – Wikipedia .
I searched via the question, “What are the medium and long-term consequences of a nation's chronic annual trade deficits"? Microsoft Bing's artificial intelligence responded as follows:
Excerpted from: Trade Deficit: Definition, Causes, and Effects (thebalancemoney.com)
“The Bottom Line
A nation with a trade deficit spends more on imports than it makes on its exports. In the short run, a negative balance of trade curbs inflation. But over time, a substantial trade deficit weakens domestic industries and decreases job opportunities. A huge reliance on imports also leaves a country vulnerable to economic downturns. Currency devaluations, for example, make imports more costly. This situation stimulates inflation. [Refer to [5 & 6]”
Excerpted from #5 :
https://www.thebalancemoney.com/trad...in-bop-3305898
"The real reason [for the US trade deficits] is that Americans are spending more than they produce. …”.
and#6: https://www2.nber.org/feldstein/proj...apr252017.html
Respectfully, Supposn
Except when a nation's workers are effectively experiencing “fullemployment”, annual trade deficits are otherwise ALWAYS net detrimental to families dependent upon wages, and entities sensitiveto the financial conditions of that substantial segment of thenation's population.
Rather than pure “free trade”, I'm among those who are aware of andadvocate USA adopt the “Import Certificates” policy as described within the link, Import certificates – Wikipedia .
I searched via the question, “What are the medium and long-term consequences of a nation's chronic annual trade deficits"? Microsoft Bing's artificial intelligence responded as follows:
Excerpted from: Trade Deficit: Definition, Causes, and Effects (thebalancemoney.com)
“The Bottom Line
A nation with a trade deficit spends more on imports than it makes on its exports. In the short run, a negative balance of trade curbs inflation. But over time, a substantial trade deficit weakens domestic industries and decreases job opportunities. A huge reliance on imports also leaves a country vulnerable to economic downturns. Currency devaluations, for example, make imports more costly. This situation stimulates inflation. [Refer to [5 & 6]”
Excerpted from #5 :
https://www.thebalancemoney.com/trad...in-bop-3305898
"The real reason [for the US trade deficits] is that Americans are spending more than they produce. …”.
and#6: https://www2.nber.org/feldstein/proj...apr252017.html
Respectfully, Supposn