| w1891 - 8/23/2024 08:49 It doesn't have to balance especially with floating currencies. Economics and trade is not a zero sum game. We don't "win" by exporting more or "lose" by importing more. Think of it like mowing your lawn. You could spend 3-4 hrs each week at that task. Or you can hire the neighbor kid and give him $100 and you go do something that pays you $300 equivalent. Say equipment repair, management decision making, etc. You will run a deficit to that kid in perpetuity but both of you are better off.
The problem is, we only export approx 75% (value) of what we import. That is the total of ALL exports and ALL imports.
So using your example, you're paying a kid $100 to mow the lawn, another $100 to wash the windows, another $100 to trim the trees and another $100 to clean the gutters all while you're only making $300. You spent $400 while making $300.
No matter how you look at it, more $'s are leaving than coming back.
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Why Biden did'nt end Trump tariffs and why they will grow
