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The U.S. Trade Deficit Math In Four Lines [Forbes]
Last alphabet inc. - class c capital stock earnings: 4/28 04:02 pm
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start to Trump's second term seems to be dead-focused at resolving the deficit problem . But here's the twist: what if we're solving the wrong problem? The deficit isn't the disease, it's a symptom. The real question is: I s America generating enough demand? Because when domestic demand is strong and fundamentals are solid, the so-called “deficit problem” starts to look secondary. Separately, with its dominance being questioned, Can Tesla Offset BYD's Surge Or Is Another 50% Stock Drop Inevitable? The Math: Deficit ? Damage Imagine WidgetCo, a U.S. company that designs high-end gadgets in California, gets them assembled in China for $100, and sells them to American consumers for $1,000 - pocketing $400 in profit. Here's what shows up in the trade math: $100 import: Adds to the trade deficit. That's $100 in U.S. dollars leaving the country. $400 profit: Gets pocketed by WidgetCo from domestic sales But the bigger picture? WidgetCo just created $10,000 in equity value assumi
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