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Your farm has a trade deficit
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Cooperator
Posted 4/28/2025 07:47 (#11205517 - in reply to #11201811)
Subject: RE: Your farm has a trade deficit



Central Alberta
Kooiker - 4/25/2025 07:28

SMH, the stupidity of this comparison drives me nuts.


A trade deficit with one supplier or one country isn't a problem.    Its the aggregate trade deficit that's the problem.     If you run an aggregate trade deficit (spend more than you take in) as a farmer, eventually you will go broke.     

The only reason the USA hasn't went broke running a $900 billion/year (aggregate) trade deficit is that the govt can create more money out of thin air.     Which just devalues (inflation) existing $'s.


You don't "go broke" running a trade deficit. It means your citizens are preferring to buy from other countries.
Tariffs are just trying to punish other countries for doing a better job.
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