|
|
|
|
|
by mpweiher
2979 days ago
|
|
Just in 2017, the US had a $64 billion trade deficit with Germany. 2016 was pretty much the same, and as I said, it's been like that for a long, long time. And no, that's not by dumping cheap products due to low labor costs. Labor costs in the industrial sector tend to be quite a bit higher in Germany, strong unions and labor protection and all that awful "socialist" stuff. The surplus is because German products are high quality and are in demand. In fact, most of the top categories of exports are the same for the US and Germany, so it's a pretty direct competition. Overall, the US trade deficit was $478 billion in 2016. Recently, Germany had a trade surplus with China, despite the much lower Chinese wages. The US current accounts deficit is very similar in scale, at $462 billion in 2017. That's the difference between the amount that the US (private+public) borrowed from foreign countries and the amount that foreign countries borrowed from the US. |
|