this post was submitted on 20 May 2025
2 points (100.0% liked)

Hacker News

1734 readers
486 users here now

Posts from the RSS Feed of HackerNews.

The feed sometimes contains ads and posts that have been removed by the mod team at HN.

founded 9 months ago
MODERATORS
[email protected]
[email protected]
2
Why Does the U.S. Always Run a Trade Deficit? (libertystreeteconomics.newyorkfed.org)
submitted 4 weeks ago by [email protected] to c/[email protected]
1 comments fedilink hide all child comments
 

Comments

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 1 points 4 weeks ago

What they're focusing on in the article is how the trade deficit is instead unlinked from gross expenses and income. The U.S. is benefitting from additional foreign investment capital and making more money as a result, even if it requires borrowing. If we wanted a smaller trade deficit, we could have it at the expense of crashing consumer demand and all the unpleasantness that is entailed by that.