Monday, November 30, 2020

Unfair deficits

Long before Trump entered politics he complained about the trade deficits that adversely affected the US. To understand the impact of trade compare Germany with the US. While the US has $600 billion dollar trade deficit, Germany has a $250 billion dollar trade surplus and consider that the US has four times the population of Germany this difference is astounding. While the US runs a trillion dollar budget deficit, Germany has a budget surplus. This means the German national debt is 50% of GDP while the US is over 100% of GDP. The interest on debt is a drain on the economy and hurts the US. When Germany sells to the US there is very little import tax but when the US sells to Germany there is a large import tax. This has been going on for many years. In addition Germany spends very little on defense since they depend on the US to cover them. They don't pay their fair share to NATO and to the UN while the US pays more than a fair share.

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