Oh goody, a test.
1. Yes. There’s nothing inherently wrong with a trade deficit. If a country can produce goods better and cheaper than we can, that benefits consumers. That’s the whole principle of a free market. You can’t force people to buy inferior products, and protectionist policies causes US manufacturers to become lazy. See the auto industry in the 1980s.
2. It hurts both. It’s a lose/lose proposition.
3. Better. They are a communist country so they don’t always do what’s best for their citizens.
4. We aren’t in a position of weakness. Our economy and employment were doing just fine before the trade wars.
That’s the problem with your whole premise, that we actually needed a trade war to have a growing economy. You’re focused on something insignificant, such as trade deficits. Rather than economic growth, low inflation and high employment. We have trade deficits with some countries, and surpluses with others. If Japan makes better cars cheaper, why should we be forced to buy American. Same with electronics, clothing, coffee, and thousands of other products. Our greatest strength is technology and innovation. That is what we export, and what makes us have the largest economy in the world, with the highest standard of living. We don’t need tariffs as long as we continue to innovate.
Now if you want to change the discussion to fair trade, that’s an entirely different matter.
https://www.marketwatch.com/story/what-history-teaches-us-about-who-wins-in-trade-wars-2018-03-02
Last edited:
