Trade deficits sound scary, but aren’t. Buying more from a grocery store than it buys from you is normal - so is a trade deficit. Trade deficits are often larger when we have money to spend. Setting tariffs based on trade deficits is like taxing your grocery store hoping it’ll shop at your house. - ThreadSky

profweinstein.bsky.social • 7 days ago

Trade deficits sound scary, but aren’t. Buying more from a grocery store than it buys from you is normal - so is a trade deficit. Trade deficits are often larger when we have money to spend.

Setting tariffs based on trade deficits is like taxing your grocery store hoping it’ll shop at your house.

Comments

johnmduk1.bsky.social•7 days ago

The stores see you buying a bit, profit eyes, they get more in

amybetht.bsky.social•6 days ago

I’ve been thinking that trade deficit seems inevitable unless you’re using a barter system. Is there anything truly wrong with having a trade deficit?

profweinstein.bsky.social•6 days ago

A trade deficit isn’t inherently bad. It’s only a problem if it signals low savings, harms workers without support, or stems from unfair trade practices.

abilityrules.bsky.social•6 days ago

The US would have a trade surplus with Canada if they didn't import electricity and oil. When the provincial governments threaten to cut energy Howard Lutnick tells Canada they are being mean. Everyone has to make Trump happy if they want a deal.

juliemccoysav.bsky.social•6 days ago

Well done👏👏👏👏

sullim01.bsky.social•6 days ago

Nike pays employees and companies in Vietnam to make their sporting apparel which is then shipped to different distribution outlets around the world. But now we’re going to put tariffs on everything coming out of Vietnam because they don’t buy what from the US? Rice? Or sneakers? It’s just stupid.

sonoma2412.bsky.social•7 days ago

Yeah, it's outrageous. The grocery store leaves me hanging, the take out place only wants my money... 🤪🤪

arabianbob.bsky.social•7 days ago

Can someone tattoo this post onto Lutnick’s and Bessent’s foreheads? Maybe Trump will glance at it?

profweinstein.bsky.social•7 days ago

Trump still wouldn't get it. He thinks “grocery” is an old-fashioned term no uses anymore. That's how disconnected he is from the reality the rest of Americans live in.

https://people.com/trump-calls-groceries-old-fashioned-term-11708310

arabianbob.bsky.social•7 days ago

I don’t know if you’ve ever watched the movie “Being There” but Trump is Chance the Gardner.

The most powerful man in the world thinks he invents words and phrases. Sigh…

grunteledboomer.bsky.social•7 days ago

Making America Great Again, like it was in the days BEFORE money, when all trade was BARTER. You made something, then traded THAT for what someone else made, that you needed.

politicalbreakdown.bsky.social•6 days ago

While the analogy is effective in challenging emotional or simplistic narratives about trade deficits, it doesn’t capture the full economic and political complexity of international trade relations.

profweinstein.bsky.social•5 days ago

If you want more detail on trade👇
https://bsky.app/profile/profweinstein.bsky.social/post/3lk5mm3o27c2t

politicalbreakdown.bsky.social•5 days ago

Thank you!! 🙏

politicalbreakdown.bsky.social•6 days ago

Amanda’s analogy is a thoughtful and accessible way to ease fears about trade deficits, especially for a general audience. While it’s a great starting point, it simplifies the more complex, long-term dynamics of international trade that matter in policy decisions.

politicalbreakdown.bsky.social•6 days ago

dennis-moore.bsky.social•6 days ago

Good analogy.

Trade wouldn't happen at all if we didn't need each other.

gebieter.bsky.social•7 days ago

As long as you have the reserve currency, trade deficits can be maintained. The same does not apply to the Emerging Markets though!

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