Trade is a function of SAVINGS.
Savings-Investment=Exports-Imports
If savings goes up in a country then exports go up.
Savings is the opposite of borrowing. Best way to increase savings is to stop the annual budget deficits the US runs. Since 1961, there has been 5 budget surpluses and 58 budget deficits.
Truman, Ike and Bill Clinton each had 3 budget surpluses.
1946-1960, the econ and markets boomed. Just like the 1990's under Bill Clinton.
Clinton passed higher taxes and matched it with lower spending.
If taxes go up and spending goes down, people will have less money. If they have less money, they spend less money. If they spend less money, then prices go down.
If prices go down the wages go down and interest rates go down. If interest rates go down, then the $ drops in value relative to other currencies. All this helps sell widgets.
GDP=Consumption+Gov Spending+Investment+ (exports-imports)
Consumption will go down but exports will go up helping the working class and growing GDP.
Almost everybody ignores this.
Savings-Investment=Exports-Imports
If savings goes up in a country then exports go up.
Savings is the opposite of borrowing. Best way to increase savings is to stop the annual budget deficits the US runs. Since 1961, there has been 5 budget surpluses and 58 budget deficits.
Truman, Ike and Bill Clinton each had 3 budget surpluses.
1946-1960, the econ and markets boomed. Just like the 1990's under Bill Clinton.
Clinton passed higher taxes and matched it with lower spending.
If taxes go up and spending goes down, people will have less money. If they have less money, they spend less money. If they spend less money, then prices go down.
If prices go down the wages go down and interest rates go down. If interest rates go down, then the $ drops in value relative to other currencies. All this helps sell widgets.
GDP=Consumption+Gov Spending+Investment+ (exports-imports)
Consumption will go down but exports will go up helping the working class and growing GDP.
Almost everybody ignores this.
