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by BobaFloutist 436 days ago
We elected an idiot. He's raising tariffs on America's greatest allies and ruining our credibility to the rest of the world too. China sells a lot more things to Americans than America does to China (because America is very wealthy), which is called a "trade deficit" (there's some old history here, back during the colonial era when Great Britain and France and Spain wanted gold and silver reserves, they came up with this theory that whichever country has the most gold and silver coming in and the least going out wins), and he thinks that that trade deficit means China is taking advantage of the US.

A lot of people have pointed out that they have a similar "trade deficit" with their grocery store and don't feel even a little taken advantage of.

1 comments

Even the gold & silver thing is a different argument: that's essentially saying a country should have a net trade surplus with the rest of the world in aggregate. You can have that while still running deficits with some/many individual nations.

The personal-finance analogy would be that it's fine for me to have a "trade deficit" with my grocery store, just as long as I'm not spending more dollars than I have coming in, overall.