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Question by Wisdom Seeker: Why are more people concerned with our National debt instead of trade deficits?
We owe China about 800 billion? What about the trillions we lose through trade via importing their exports?
Do you understand that American wealth ends up in China in the trillions?
You have two economies. An External(a global economy) and internal(your country’s economy(sometimes called a “local” economy”). When a nation exports to the rest of the world they bring in foreign wealth that circulates in their “internal/local” economy. That nation becomes wealthy.
When you allow another nation(say like China) to shift our wealth into their own nation we start to lose wealth.
Why are people not concerned about this? We are losing more wealth via trade deficits
Best answer:
Answer by Beefcake
Yeah, there are a lot of ways to look at this. They are both foolish. America is being destroyed by design.
What do you think? Answer below!
I think the debt is more in your face. But trade deficit is one of the causes of debt. So it is equally important.
Actually people are concerned about both issues.
One very good way to drastically reduce our trade deficit is to use Natural Gas instead of oil in our cars.
In The United States of America we have enormous supplies of Natural Gas.
Automobiles run very well on Natural Gas.
The only problem is that automakers stopped offering the Natural Gas option because so few customers were willing to pay for the Natural Gas option to have the car run on either Natural Gas or gasoline with the flip of a switch on the dashboard.
If Obama were to specify that all cars purchased by The Federal Government must have the ability to run on Natural Gas as well as gasoline that would give the auto manufacturers sufficient volume of cars with the Natural Gas option that it would be cost effective to offer the Natural Gas option again.
Also the Federal Government woud save an enormous amount of money on fuel costs because the price of natural Gas for the same energy content is less than one half the price of gasoline.
Alol of the Natural Gas is produced in The United States of America so we could drastically reduce our imports of oil,
The Narual Gas supplies in the United States of America are enormous. We have enough known Natural Gas reserves in The United States of America to run all of the cars on Natural Gas instead of Gasoline for the next 90 years.
There are enormous tracts of land in The United States of America that are suspected of having large reservoirs of Natural Gas. However the land has not been explored so it is impossible to say what is truly there.
I recommend that you write to your Congressperson and Senators and tell them to tell Barack Obama to require that all cars purchased by the Federal Government have the ability to run on Natural Gas as well as gasoline.
While I share your concern I hope you are not suggesting a policy of protectionism.
When restrictions on imports are accompanied by government subsidies to domestic companies and government export subsidies to encourage exports of domestic products, protectionism is intended to benefit domestic companies. However, this is not the case. Thanks to the lack of competition, companies may have less interest in developing innovative new products, sticking with old inventions and technologies. They may also face export barriers, because foreign countries often respond to protectionism with protectionist policies of their own.
Individual citizens also suffer under protectionism, because they find that prices for goods and services become inflated. Without low-cost foreign competition, companies can afford to charge whatever they like for their goods and services, and this means that consumers pay prices which are much higher than those paid by people in other regions of the world. They also chafe at the lack of innovation, or lobby for a greater freedom to choose between products.
Our economy needs true tax reform instead to recover.
The aim of tax policy is to unleash the economy, not balance the federal budget . Although government cannot “grow” the economy, government can reduce its burden on the economy by lowering tax rates. High tax rates discourage the key foundations of economic expansion–working, saving, investing, and business development. Lower tax rates would trigger economic growth that would create more jobs, raise incomes, and decrease poverty.
Some politicians invoke the slogans “fiscal discipline” or “fiscal responsibility” as excuses not to cut tax rates. Only in Washington would these mottos mean government’s taking more money while increasing spending on wasteful government programs. True fiscal discipline would entail government’s taking less from people. Sadly, when some politicians cite “fiscal discipline,” they mean fiscal discipline for American families, not for Washington.
The way to reverse the economic slowdown is to reduce government barriers to economic expansion imposed by high tax rates on working, saving, investing, and business development. The less government punishes these activities, the more these positive forces of economic growth will flourish. If government takes its foot off the brake–permanently, immediately, and dramatically–the economy will soar.
We still have a higher GDP than China, or any other country on the planet.
although I won’t say having debt is a good thing, I think people freak out too much about it nowadays.
our debt, relative to GDP, is average compared to other developed nation. only 25% of our loan bonds are overseas, and the ones our government takes locally is only 4-5%, meaning there’s good faith that america will pay back the loans (we always have).
yes, we import more than we export. thats just the way of it. post-industralized nations rarely do the inverse.
people aren’t worried about it because its not that big of a deal.