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Trade deficits are ALWAYS (MORE THAN OTHERWISE) detrimental to their nations’ GDPs.GenSeneca, it’s argued that the expenditures for foreign products cannot again be spent for domestic products. It’s further argued that nations' global trade balances inversely affect their GDPs more than otherwise. (The comparatively simpler and more common method of calculating GDP is by the use of expenditures. Other methods should yield similar GDP statistics). You argue that annual statistics demonstrate a positive rather than an inverse relationship between trade deficits and their nation’s GDPs. Logically then wouldn't a trade surplus be detrimental to the GDP? Trade deficits are not the only factor that affects GDP. Nation’s import volumes are affected by their volumes of all (imported and domestic) products sold within their domestic markets. Similarly nations’ export volumes are affected by the volumes of all products sold within their foreign markets. Currency exchange rates are both affected by and affect nations’ trade deficits. (My next message comments upon “Currency Inflation and Trade Deficits”). For simplicity’s sake there’s an unstated qualifier to the statement “trade deficits are ALWAYS (MORE THAN OTHERWISE) detrimental to their nations’ GDPs”.Respectfully, Supposn
Trade deficits are ALWAYS (MORE THAN OTHERWISE) detrimental to their nations’ GDPs.
GenSeneca, it’s argued that the expenditures for foreign products cannot again be spent for domestic products. It’s further argued that nations' global trade balances inversely affect their GDPs more than otherwise.
(The comparatively simpler and more common method of calculating GDP is by the use of expenditures. Other methods should yield similar GDP statistics).
You argue that annual statistics demonstrate a positive rather than an inverse relationship between trade deficits and their nation’s GDPs. Logically then wouldn't a trade surplus be detrimental to the GDP?
Trade deficits are not the only factor that affects GDP. Nation’s import volumes are affected by their volumes of all (imported and domestic) products sold within their domestic markets. Similarly nations’ export volumes are affected by the volumes of all products sold within their foreign markets. Currency exchange rates are both affected by and affect nations’ trade deficits. (My next message comments upon “Currency Inflation and Trade Deficits”).
For simplicity’s sake there’s an unstated qualifier to the statement “trade deficits are ALWAYS (MORE THAN OTHERWISE) detrimental to their nations’ GDPs”.
Respectfully, Supposn
