i was reading up about china and canada and i just need someone else's opinion about FREE TRADE and the condition that our deficit is in.
2007-04-27 03:40:40 · 2 answers · asked by kayanna123 3 in Social Science ➔ Economics
Trade deficit is a statistical illusion. If you consider the flow of capital in addition to the flow of goods, you will see that there is no deficit. Americans are simply paying for goods and services with stocks, bonds, land, and real estate...
The deficit you do need to worry about is not the trade deficit, it's the budget deficit... Trade deficit has a way of taking care of itself through currency adjustment. Budget deficit doesn't.
As to agreeing or disagreeing with free trade, it's somewhat aking to agreeing or disdagreeing with gravity. Regardless of whether you agree or disagree, gravity will exist and free trade (when it is allowed) will produce gains to the world as a whole, which, needless to say, will benefit some people more than others...
2007-04-27 07:59:09 · answer #1 · answered by NC 7 · 1⤊ 0⤋
As long as countries are dumb enough to keep trading with us it is not a problem,
finally all that money will eventaully have to come back to the usa,
people keep forgetting that part.
2007-04-27 13:15:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋