| IN555 - 4/4/2025 18:51
I’ll repeat if fighting the trade deficit is to cure deficit spending has anyone thought the deficit spending might have an impact on the trade deficit?
I believe this is called twin deficits theory. Not a perfect correlation as other variables can have greater influence. For example Clinton balanced the budget and trade deficits still grew due to the strong dollar. In 2008, fiscal deficits exploded and our trade deficit was cut in half as the rest of the globe was slower to recover and we started pumping crude oil production. |
Borrowed tariff thoughts
