Also, every legitimate economist states that measuring trade policy by the size of the goods deficit is probably not a passing grade in a basic economics class. Do you have any clue what you’re talking about?
“Deficit” in the term “trade deficit” is not analogous to a deficit in personal or business finance. Trade deficits are always offset by capital inflows. A trade deficit with a financial account surplus does not necessarily mean that the U.S. is over-consuming in the present and under-investing for the future. When a trade deficit’s offsetting inflow of foreign capital goes toward government debt, it increases U.S. productivity by freeing capital for private investment.
A country like the U.S. runs an annual trade deficit with a partner country when Americans buy more goods and services from the partner than they sell to it. As a result, money flows out of the U.S. to the country, which sounds bad.
But that’s not the end of the story. Those foreigners with the trade surplus – let’s say in China – now have extra saving that needs to be put to work. A lack of productive investment opportunities at home means they look to other countries – like the U.S. – to profitably use their money.
In other words, money flowing out to pay for imports flows back in to help pay for productive investment in new capital.