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An economist working for a recent president, once argued that , trade deficits are always bad for the economy. He said something like look
An economist working for a recent president, once argued that , trade deficits are always bad for the economy. He said something like " look at the national income identity, y=c+I+G+(x-m). The last term is the balance of trade. If imports, m, are bigger than exports, x, we have a trade deficit and that last term is negative, meaning that it's lowering gdp." His math is right but his economics are wrong
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