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HiPointDem

(20,729 posts)

3. Read it again:

Reply to FogerRox (Reply #2)

Mon Apr 9, 2012, 10:44 PM

Apr 2012

If we are buying more from abroad than we are selling,
this means that we have negative national saving.

If we have negative national saving,
then either the public sector must have negative savings (i.e. a budget deficit)
or the private sector must have negative saving
(we are investing on net more than we households and corporations save)
or both must have negative saving...

If we have a trade deficit, we *will* have deficit in the private or public sector.

It doesn't mean that the reverse proposition is true (If we have budget deficit, we *will* have trade deficit).

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Understanding the deficit: the deficit is a function of trade balance [View all] HiPointDem Apr 2012 OP

Finally - some one "Gets it" FreakinDJ Apr 2012 #1

But in the last century we had no trade deficit and a budget deficit prior to 1965 FogerRox Apr 2012 #2

Read it again: HiPointDem Apr 2012 #3

So, not that we did not know this, SS has nothing to do with the deficit. sabrina 1 Apr 2012 #4

Reduce the trade deficit; increase GDP & median wage Supposn Apr 2012 #5

I must respectfully partially disagree FogerRox Apr 2012 #6

Reduce the trade deficit; increase GDP & median wage Supposn Apr 2012 #8

So raising taxes would narrow the trade deficit? cthulu2016 Apr 2012 #7