Slade3200
Diamond Member
- Jan 13, 2016
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Trade deficit is kind of a deceiving term as it is perceived by some as a simple financial loss... but we can’t forget that the “loss” of money we pay to the Chinese is for goods that fuel many American businesses. And those dollars do come back through the cycle of a free trade system. World trade and commerce is a very complicated subject with many moving parts but you are right that the trade deficit has nothing to do with the national debt...He says that tariff's are taxes.
Yet, they somehow don't bring down the debt.
Brilliant analysis Shapiro. So I assume that the only way to pay down the debt is by magic then.
No...it's called 'cutting spending'. It's what Conservatives are supposed to be good at. You know...'small government'?
First you cut spending. Then you balance the budget. Then you increase tax revenues by (hopefully) having the economy boom. Then you start paying down the debt.
That is how you pay down the debt.
Tariffs have NOTHING to do with paying down the national debt...NOTHING. They are (ideally) to protect/create jobs. They (ideally) reduce the trade deficit.
But the trade deficit has NOTHING to do with the national debt.
Unless of course you are considering the entire American economy and assume that the tarriffs will result in more US businesses/jobs and/or better trade deals which will result in a higher GDP, increasing revenues and going towards our national debt. We need to get our GDP to debt ratio down bigly
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