Doesn’t the trade deficit directly reduce the GDP of a nation? That is the question.
Jay Parker (I)
1

You’ll have to explain how a trade deficit reduces GDP. When you look at the historical data you’ll see that the trade deficit usually falls during bad economic times, especially during recessions and the Great Depression.

I think the ideal balance is to produce the things in which we have a comparative advantage and import the rest, regardless of what deficit or surplus is produced.

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