Trade Deficit

[shoooot9]

It is obvious that something must be done about the exponentially growing budget deficit. More importantly, the trade deficit, which is a huge problem, and is mostly a result of billions of dollars owed to foreign countries. America and the government must do something in order to set imports and exports at equilibrium. Currently, our imports far exceed our exports due to the fact that these foreign power nations are making many products found in America, but at a much cheaper price. In order to reduce trade deficit we must compete with these nations. We can not allow foreign countries to steal some of our GDP. The American producers must fight to compete with foreign prices and the American people most make a stand on domestic consumption.

Let me hear your thoughts on this topic?

 

[MtnBiker]

It is obvious that something must be done about the exponentially growing budget deficit. More importantly, the trade deficit, which is a huge problem, and is mostly a result of billions of dollars owed to foreign countries.

How are the budget deficit and trade deficit related?

 

[Mr. P]

...

Let me hear your thoughts on this topic?

Socialize the Country, first get rid of Bush. That'll do er.
Tis what ya wanna hear ain't it?

 

[shoooot9]

Well if we reduce trade deficit that means we will be increasing domestic production and consumption, which increases total consumer expenditures and strenghtens economic activity. When this happens government budget deficit decreases due to more domestic consumption and less government intervention.

 

[Said1]

Well if we reduce trade deficit that means we will be increasing domestic production and consumption, which increases total consumer expenditures and strenghtens economic activity. .

To my knowledge, trade isn't measured accurately, meaning that all things imported are considered imports, even if they are "outsourced" items. Reducing imports doesn't automatically equate increased manufacturing and services provided at home as your scenario would indicate.

 

[dmp]

Unions.

 

[shoooot9]

Thats true even if import deficits are reduced that does not automatically mean increase in total consumption because exports or outsources play a significant roll. Overall, something should be done about trade deficit.

 

[MtnBiker]

Well if we reduce trade deficit that means we will be increasing domestic production and consumption, which increases total consumer expenditures and strenghtens economic activity. When this happens government budget deficit decreases due to more domestic consumption and less government intervention.

I believe that it is an assumption that we would increase consumption by importing less from other countries. Wouldn't our consumption remain steady with current demand given the price for goods were the same regardless of country of origin?

 

[MtnBiker]

The budget has less to do with consumer consumption then Congressional spending. Lets reduce pork spending.

 

[shoooot9]

Yes, consumption would stay the same if prices are stagnant, but they are not, I am trying to say that foreign countries are producing the same products, however at a much cheaper price. So this means that demand is greater for these products when prices are cheaper and they usually are outside America. This means that if Americans can buy the same products for the same cheaper price as they can from imports, then demand for products domestically will increase and so will total GDP.

 

[Said1]

Yes, consumption would stay the same if prices are stagnant, but they are not, I am trying to say that foreign countries are producing the same products, however at a much cheaper price. So this means that demand is greater for these products when prices are cheaper and they usually are outside America. This means that if Americans can buy the same products for the same cheaper price as they can from imports, then demand for products domestically will increase and so will total GDP.

No it doesn't.

I know econimics is based on a lot of assumptions, but this is reaching extra far.

 

[manu1959]

balance the trade defict....

so we want to export more than we import.....

the world only wants so much of our shit....so that is fixed...we can't make them buy more

so that means we need to import less which means block certain things from comming in.....which means we won't be able to buy them any more....cars, stereo equip, tvs, computers etc....

we will only be able to buy the american stuff which either; A: will cost more because of the cost of american labor or 2: is crap and won't get bought at all....

also, what happens to all the people that were working in the import sector selling all the import crap ....won't they all be out of work so unemployment will sky rocket?

seemed like a good idea at the time though.....

 

[shoooot9]

We need to import less, and alternatively buy more domestically.

 

[Annie]

We need to import less, and alternatively buy more domestically.

Then the products here must improve qualitatively or come down in price. The first is easier than the latter.

 

[Said1]

We need to import less, and alternatively buy more domestically.

That's not readily possible. It's been explained to you several different ways. Move on or offer a better explaination.

 

[manu1959]

We need to import less, and alternatively buy more domestically.

economic isolationism does not work......

 

[shoooot9]

haha alright I guess I am beat on this resolution, but somebody needs to agree that something needs to be done about the raging trade deficit.

 

[shoooot9]

economic isolationism does not work......

I never said we need to be economically isolated,that is ridiculous. I said we need to attempt to import less, and domestically compete with other foreign goods/countries before we are tremendously in debt to countries that produce products that are cheaper, more dependable, more reliable, and more efficient.

 

[waltky]

Granny says, "Dat's right - dat's why dem Chinamens is eatin' our lunch...

U.S. Merchandise Trade Deficit With China in October: $31,109,100,000
December 6, 2016 | The United States ran a $31,109,100,000 merchandise trade deficit with the People’s Republic of China in October, according to data released today by the Census Bureau.

This $31,109,100,000 bilateral merchandise trade deficit was by far the largest the U.S. ran with any trading partner for the month. The U.S. ran its second largest merchandise trade deficit in October with Mexico--a deficit of $6,194,000,000. The $31,109,100,000 U.S. merchandise trade deficit with China in October was more than five times the $6,194,000,000 trade deficit with Mexico.

Filling out the Top Ten for bilateral U.S. merchandise trade deficits for October—after China and Mexico—were Japan ($5,928,900,000), Germany ($4,987,500,000), Ireland ($3,094,800,000), Vietnam ($2,553,600,000), India ($2,427,300,000), Italy ($2,334,500,000), Malaysia ($2,206,100,000) and France ($1,729,800,000). During October, according to the Census Bureau, the United States exported $12,698,000,000 in goods to China but imported $43,807,100,000 back from China. Thus, the value of the goods the U.S. imported from China was almost three and a half times the value of the goods that the U.S. exported to China.

So far in this calendar year (January through October), the U.S. has run a $288,780,900,000 merchandise trade deficit with China. In calendar year 2015, the U.S. ran a record $367,172,900,000 merchandise trade deficit with China, according to the Census Bureau. Worldwide in October, the U.S. ran a $63.4 billion merchandise trade deficit—importing $186.5 billion in goods while exporting $123.1 billion. The $63.4 billion merchandise trade deficit in October was up $6.3 billion from the $57.1 billion merchandise trade deficit in September.

U.S. Merchandise Trade Deficit With China in October: $31,109,100,000

 

[EdwardBaiamonte]

The American producers must fight to compete with foreign prices and the American people most make a stand on domestic consumption.

Our beloved Donald Trump wants to reduce or eliminate corporate taxes and regulations so American manufacturers can compete with foreign prices. Do you understand?