|
|
|
|
|
|
by _bin_
439 days ago
|
|
|
What projection suggests GDP growth will be even with the increase in debt? FRED data suggests the opposite is happening: https://fred.stlouisfed.org/series/GFDEGDQ188S Debt growth is massively outpacing growth in GDP. You're right that it's less of an issue if we grow quickly and effectively keep leverage the same but that's not what's happening. Germany and Japan haven't focused super heavily on achieving a trade deficit. As you said, Germany has huge problems with her welfare state and Japan has huge demographic issues. I'm not saying we should achieve a trade balance by tariffing everything to death; I am saying we should focus on faster growth to get there and reduce our insane level of consumerism. I don't have an issue with a temporary trade deficit for growth-oriented reasons, but I have little save contempt for people ordering packages of chinesium temu crap. |
|
|
They have. For Germany maximizing their trade surplus was one of their primary goals for many decades. Amongst other things that’s why they accepted the Euro (easier than devaluing DM).
> As you said, Germany has huge problems with her welfare state
I never said that.
And Germany specifically has quite low government debt and a very high trade surplus. Yet.. it’s not doing better economically than the US. Welfare hardly has much to do with that.. e.g. US government excluding all private spending spends about the same as Germany as % of GDP on healthcare. Total social spending is not that massively higher either (~23% vs ~28%).
> ordering packages of chinesium temu crap
Sure, but that’s by and large insignificant. If we look up US imports by category consumer goods don’t really make up that much.
Also, I don’t really see how can tariffs do much besides lowering productivity and increasing prices.
Like that complete nutjob Lutnick said they want “millions and millions of people in America screwing in little screws to make iPhones”. That just makes no sense, you want to minimize the amount of easily outsourcable low productivity jobs in your country.