NE Mo | kgbarnett22 - 4/28/2025 11:54
In my scenario that is correct. But in the scenario of the United States as a whole that’s not the case. They spend 1 trillion more on imports than they make on exports. The only way the United States gets ahead on money is by selling assets in the United States to foreign countries. Which isn’t accounted for in the 1 trillion dollar deficit. Or magically creating more money which is what they do. This drives inflation up.
Please expand your understanding of economics. It is not a zero sum game and money is not all magically created by the government. It is, however, created to the tune of several trillion a year through lending. Simply google how money is created and read just a bit and it would help you immensely in understanding the subject. But sure I am the one on a "fifth grade level". |