What's the dems solution to the trade deficit?

[JayJay]

@Cratic3947

The reasons other countries protect their markets…

Where are most countries that practice protectionism in their economic evolution?

[Cratic3947]

@JayJay

@Cratic3947

The reasons other countries protect their markets…

Where are most countries that practice protectionism in their economic evolution?

For some reason libs can’t answer questions, they can only ask them…

[Airyaman]

@Cratic3947

It’s a lazy dodge from you have to answer the question, so no…

Pick the best reason, they have and post it.

I at least read the article I linked to, so I’ve put up more effort than yourself.

You wanted to know why countries subsidize, and I gave you an article explaining some reasons why we do it.

The shortest answer is that countries want these businesses to thrive in their country, so they prop them up with subsidies. We do it, almost every country does it. I don’t personally agree with it as a fiscal conservative, but I accept the reality of it.

That said, do you agree we should drop all subsidies that protect US interests?

[koushi_shinigami]

@JayJay

Yes- and treating everybody as an adversary that must be beaten has been known to work SOOO well, too…

I’m good with it. especially when that is the stance that much of the rest of the world had taken against us.

[Cratic3947]

@Airyaman

@Cratic3947

It’s a lazy dodge from you have to answer the question, so no…

Pick the best reason, they have and post it.

I at least read the article I linked to, so I’ve put up more effort than yourself.

You wanted to know why countries subsidize, and I gave you an article explaining some reasons why we do it.

The shortest answer is that countries want these businesses to thrive in their country, so they prop them up with subsidies. We do it, almost every country does it. I don’t personally agree with it as a fiscal conservative, but I accept the reality of it.

That said, do you agree we should drop all subsidies that protect US interests?

I’m all for stopping subsidy to American business, unless it effects national security. But I don’t consider tariffs, a subsidy, it’s a tax…

[dantes]

Tariffs have the exact same effect as a subsidy.

[BigBear]

@Cratic3947

I know they are good at throwing stones, but what would they do as a solution? There was a big "fair’ trade movement from the left a couple of years ago, but that seems to have gone away since Trumps wants fair trade. So, what are the dems running on this cycle?

Read this:

Opinion | Bumbling Into a Trade War (Published 2018)

Then you will know far more than Trump does about what “trade deficits” mean. That’s not saying anything, of course, but you will be more informed.

Some excerpts:

Let’s be clear: When it comes to the global economic order, China is in fact a bad citizen. In particular, it plays fast and loose on intellectual property, in effect ripping off technologies and ideas developed elsewhere. It also subsidizes some industries, including steel, contributing to world excess capacity.

But while his [Trump’s] coterie mentions these issues, Trump seems fixated on the U.S. trade deficit with China, which he keeps saying is $500 billion. (It’s actually $375 billion, but who’s counting?)

What’s wrong with this fixation?

First of all, much of that big deficit is a statistical illusion. China is, as some put it, the Great Assembler: Many Chinese exports are actually put together from parts produced elsewhere, especially South Korea and Japan. The classic example is the iPhone, which is “made in China” but in which Chinese labor and capital account for only a few percent of the final price.

and:

And here’s the thing: By bumbling into a trade war, Trump undermines our ability to do anything about the real issues. If you want to pressure China into respecting intellectual property, you need to assemble a coalition of nations hurt by Chinese ripoffs — that is, other advanced countries, like Japan, South Korea and European nations. Yet Trump is systematically alienating those countries, with things like his on-again-off-again steel tariff and his threat to put tariffs on goods that, while assembled in China, are mainly produced elsewhere.

All in all, Trump’s trade policy is quickly turning into an object lesson in the wages of ignorance. By refusing to do its homework, the Trump team is managing to lose friends while failing to influence people.

[Cratic3947]

The NYT hates Trumps and hires open racists, so they are not objective…

[FreeAndClear]

Who gives a ■■■■ it describes the dem position on trade deficits. You asked for an subjective analysis and then cried Bias? Fascinating

[TommyLucchese]

Lol you guys are squarely on the side of actual leftists now re: tariffs and ■■■■■ It is to lol.

[goodbyte]

The question inherently assumes that trade deficits are bad.

[Chris]

Trump Tariffs is a big reason why I am glad that I am no longer registered Republican.

[Airyaman]

@Cratic3947

I’m all for stopping subsidy to American business, unless it effects national security. But I don’t consider tariffs, a subsidy, it’s a tax…

Both are a form of protectionism. One makes buying foreign goods more costly, which is supposed to incentivize the purchasing of domestic alternatives that might cost more without the tariffs. The other assures that a business will still have a source of income should they be unable to sell their goods on the free market, or to boost income to help a business thrive.

As you might have noted in the trade war thread, the price of domestic steel increased with the tariffs. So now all steel costs more, not just the foreign steel. I predicted as much. The only winners in that are the government (tariffs) and the domestic steel mills (increased profits). All consumers of steel lose.

[JayJay]

The answer to your question is contained in the answer to mine.

Socratic Method and all that.

[JayJay]

No they haven’t.

That’s just the spin that’s been given to you.

[BigBear]

@Cratic3947

The NYT hates Trumps and hires open racists, so they are not objective…

Was there something in the piece you can identify as “biased”?

[WuWei]

@Orygun

China supplies the US with things they can make for cheaper because of cheaper labor there. Unless the US decides to drastically lower what US laborers earn, there is no “solution” to the trade deficit.

The answer is for the US to continue to diversify into areas that are hard to duplicate with cheap labor.

Good post. Can you give examples?

[Cynic]

Only Trump sycophants think that trade deficits are fundamentally bad, because dear leader said so; it can make you sound tough and frame everyone as “winners and losers”.

Johnny buys more apples from Bob, than Bob buys diamonds from Johnny, because Bob is a poor dude just making ends meat. Not to mention Johnny really only sells financial consulting services anyway. Johnny has a trade deficit with Bob… OH NO… TIME FOR A TRADE WAR!

Negative trade deficits for the USA are really an indicator of wealth and consumption.