The U.S. is not spending more than it makes. All our imports are paid for in cash.
The trade deficit is not debt.
What you're claiming would be true if we only made money from what we export. But we also make money from the goods we manufacture and sell within the U.S.. We use some of that money to buy goods from abroad.
“What you’re claiming would be true if we only made money from what we export. But we also make money from the goods we manufacture and sell within the U.S.. We use some of that money to buy goods from abroad.”
I’m not an economist: I’m not claiming, just asking. “We use some of that money to buy goods from abroad”—therein lies my question. How much is “some”? When does “some” become “too much”? How is that measured? I’m trying to imagine how trade deficits would not go into those calculations. At some point, you’re selling off your assets, not just the product of your created goods and services. And after that, you start running out of things to exchange with.
“What you’re claiming would be true if we only made money from what we export. But we also make money from the goods we manufacture and sell within the U.S.. We use some of that money to buy goods from abroad.”
I’m not an economist: I’m not claiming, just asking. “We use some of that money to buy goods from abroad”—therein lies my question. How much is “some”? When does “some” become “too much”? How is that measured? I’m trying to imagine how trade deficits would not go into those calculations. At some point, you’re selling off your assets, not just the product of your created goods and services. And after that, you start running out of things to exchange with.