"In the last month of 2005, the U.S. trade deficit hit $65.7 billion, a 1.5% increase over November and the third highest monthly deficit on record, according to a report released by the Commerce Department on Friday." [via SmartMoney]
Oh great. But according to the article, most economists don't really care anymore...um, neato?
Heh, was just talking about that the other day with family. My dad believes it's just an accounting trick. Ultimately, that money that goes out of the US comes back - whether through services, products, or investments.
ReplyDeleteI guess the analogy goes that if it's better to buy US only, then it's better to by Michigan only, and if it's better to buy Michigan only, it't better to buy Detroit only, and if it's better to by Detroit only, then do everything yourself and you'll be rich.
In a global economy, money flows around, efficiency is high, and more products and services are created than possible otherwise :)
I've heard that you can actually make a donation to lessen the national debt. Apparently the government actually gets over $1 million a year from people who are worried about it and just mail in a check!
ReplyDeleteSo for the trade deficit, maybe individuals can just buy a lot of stuff and try to sell it on Ebay China?