someoneyouknow
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China's 2018 trade surplus with the U.S. surged to a record $323.3 billion. That means the U.S. purchased that much more in goods and services from China than it shipped to the country.
"An overwhelming majority of economists point to the high consumption levels and low savings rates in the U.S. as a major determinant of large U.S. trade deficits in general, and China in particular," Michelle Casario, an associate professor at Villanova University, said in an email to CBS MoneyWatch.
"The Trump tax cuts not only increased the budget deficit, they also increased disposable income, at least for now, which increases consumption," Casario said. "The irony here is that the tax cuts indirectly increased the trade deficit, which has been at the center of Trump's policy agenda."
Unless the large federal budget deficit shrinks and the low savings rate rises, "the U.S. will continue to experience the world's largest trade deficit," Casario said. "Tariffs do not reduce trade deficits, they simply reduce (or have the potential to reduce) trade flows. The asymmetries in trade will persist."
https://www.cbsnews.com/news/record-u-s-china-trade-gap-may-signal-slower-global-growth/
"An overwhelming majority of economists point to the high consumption levels and low savings rates in the U.S. as a major determinant of large U.S. trade deficits in general, and China in particular," Michelle Casario, an associate professor at Villanova University, said in an email to CBS MoneyWatch.
"The Trump tax cuts not only increased the budget deficit, they also increased disposable income, at least for now, which increases consumption," Casario said. "The irony here is that the tax cuts indirectly increased the trade deficit, which has been at the center of Trump's policy agenda."
Unless the large federal budget deficit shrinks and the low savings rate rises, "the U.S. will continue to experience the world's largest trade deficit," Casario said. "Tariffs do not reduce trade deficits, they simply reduce (or have the potential to reduce) trade flows. The asymmetries in trade will persist."
https://www.cbsnews.com/news/record-u-s-china-trade-gap-may-signal-slower-global-growth/
