What would happen to the United States if billion dollar trade deficit was paid off ?

Answer 1

The "trade deficit" is not a measurement of an amount of money that we owe to other countries. It is the difference between the amount of money we spend purchasing imported goods and the amount of money other countries send to us to buy our goods. There is no way to "pay off" the trade deficit, it can only be balanced.

The "national debt" is the amount of money we owe to other countries, and that is much larger than a billion dollars. It is actually getting pretty close to $10 trillion. Theoretically, this could be paid off, but every American will need to kick in about $30,000.

Answer 2

Nothing. The U.S. trade deficit was $762 billion in 2006 alone. So "paying off" (whatever that means, since trade deficit is not a stock, but a flow) one billion dollars would barely make a dent in it...

Answer 3

You can't pay off a trade deficit. A trade deficit isn't owed by anyone to anyone. It is just the difference between what we send abroad in goods and what we receive in goods.

Sorry, Kevin, you were posting that at the same time. Good call. I have a trade deficit with Kroger, but I can't figure out how to make them buy some of my goods.

Answer 4

we would use it again. The united states doesnt want to be at a equal buget there is no use for it. They just pass another bill to aid the war or anything else. The U.S doesnt worry about it because all they have to do is raise taxes and within days they pay off the deficit. So a billion or even trillion dollar deficit wont affect the U.S at all. Thats why we always have our buget in the negatives

Answer 5

You can't "pay off" a trade deficit -- that's a nonsensical statement. You don't understand what a trade deficit is. A trade deficit just means the US imports more than it exports.

You have a trade deficit with your local grocery store because you buy more from them than they buy from you.

A trade deficit is already "paid for" when the stuff is imported -- just as you pay for your groceries when you buy them. There is no remaining "debt" that can be "paid off".

Answer 6

There would be more money for war and George W could finally go to war with Iran and maybe N. Korea at the same time.

Answer 7

Bush cronies would really get super rich--they'd probably start a war with Canada or something equally stoopid

Answer 8

money investment would become very intresting