Anyways, that's not what I was going to talk about.
This morning was an intense day in economics. We were discussing, and by we I mean the professor, trade deficits and the effects it has on the economy. He mostly mentions how the trade deficit has existed since the seventies, about the same time the gold standard was eradicated, coincidence, I think not! But the deficit is met with an equal amount of international investment. So if we happen to have a 720 billion dollar trade deficit, then to anchor the deficit we would likewise have about 720 billion dollars of outside capital investment into the US. At least this my take on it, Thorsten Polleit said it better. I would suggest reading it in defense of a neo-nationalist who thinks we should retain jobs and capital in America because its the American thing to do. And the answer to all the problems is to fix the trade deficit.
In conclusion of my story, the teacher was not met with any kind of comment. Just goes to show how he should have mentioned there was a severe deficit of attention, which should have been solved.
Of course, right now, the trade deficit is not a hot topic, but in the resurgence of the issue, I would just like people to ready and armed.
Any more arguments for or against the trade deficit are welcome to comment.
