Quote:
Originally Posted by Paul Markham
Because without balanced trade the economies of the West lose out. That means fewer jobs, lower wages, fewer opportunities. In porn, we rely on having customers who can afford to buy our products. Workers losing jobs or on lower wages reduces our market to sell.
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paul are you pretending be that dumb ????
i can not believe that a man over 60 can not understand the most simple rules of trade.
yes germany HAS a trade deficit with china
https://de.statista.com/statistik/daten/studie/250757/umfrage/deutsche-handelsbilanz-mit-china/
but the overall trade balance in germany is positive and do you know why?
because the largest market in the world is NOT the USA.
the far largest market are the 168 OTHER countries in the WTO with
people what are a lot poorer but a lot more.
china HELPS us with cheap parts and basic materials to produce goods for a price they can afford.
without this trade deficit with china we would not be able to compete in this markets.
the other thing that dumbs like you donīt want to understand is the fact that the US trade deficit is a fake.
i try to explain you again on a very simple example
letīs say a company imports for 100 million $ steel from china and produces something with it in USA. letīs say the final products would have cost of 500 million and letīs say 50000 pieces are produced.
from this 50.000 pieces 25.000 are sold in US and they have been sold on a price of 500 million. the other 25.000 pieces go into export for a price of 100 million.
the export goes to a daughter company in singapore. this company is selling the 25.000 pieces for a price of 300 million to the whole world (including china).
how does the trade balance look now ?
US imported for 100 million from china and exported 100 million to singapore
the trade balance is zero but the trade balance with china is -100 million.
the profit for the producing company in USA is 100 million.
but they made another 200 million with their daughter in singapore.
so now take china out of this game and try the same with american steel and you will see that this CAN NOT WORK because NOBODY would buy it except americans.
that means that they will never need that much steel and they will need LESS workers to produce fewer products for the US market (what will be for the now higher price also smaller).
this is KILLING jobs and not producing jobs.
companies who do not want to lose this huge "poor market" will go directly to china and they are out of the complete trade revenue of USA.
if you are incapable to understand that simple logic you should not discuss it because you make yourself a clown with your arguments what could be from a 5 year old boy.