Posted 1/31/2017 00:10 (#5806397 - in reply to #5805350) Subject: Because someone else ends up owning us
C IL
There is the answer in bold. It comes back as investment.
In other words, we buy cheap stuff from someone else, running a deficit. They make money and end up owning us.
Not a now problem. A problem for our grandkids. We are suckers for inexpensive Walmart imports. Not sure how Sam Walton would really feel about that today.
Why is a trade deficit a bad thing?
