Re: Trade deficits are always detrimental to their nations’ GDPs.
I can't believe I didn't see it earlier... I found the problem. You mistakenly believe that imports are represented as a negative integer because they are "detrimental" to the Gross Domestic Product.
That is incorrect.
GDP (Y) is a sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X - M).
Y = C + I + G + (X − M)
...
M (imports) represents gross imports. Imports are subtracted since imported goods will be included in the terms G, I, or C, and must be deducted to avoid counting foreign supply as domestic.
Imports are not produced Domesticly and therefore should not be counted in Gross Domestic Product.
Imports add a positive value to the terms of G, I, and/or C.
To give an accurate account of Gross Domestic Product, the Import value must be zero'd out.
Imports are therefore represented as a negative integer (- M) to zero out the positive value they add in G, I, and/or C.
Imports are not detrimental to GDP.
