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Why Does the U.S. Always Run a Trade Deficit? (libertystreeteconomics.newyorkfed.org)
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[-] aow@sh.itjust.works 1 points 5 days ago

What they're focusing on in the article is how the trade deficit is instead unlinked from gross expenses and income. The U.S. is benefitting from additional foreign investment capital and making more money as a result, even if it requires borrowing. If we wanted a smaller trade deficit, we could have it at the expense of crashing consumer demand and all the unpleasantness that is entailed by that.

this post was submitted on 20 May 2025
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