Trade Ignorance and Demagoguery

By Ammoland

By Walter E. Williams
Editors Note: AmmoLand News welcomes Walter E.Williams to our growing list of the best and brightest conservative commentators.

USA – -(Ammoland.com)- When we discuss international trade and balance of payments, there are two types of accounts.

There is the current account, which includes goods and services imported and exported and receives the most political attention.

In 2016, the American people imported $479 billion worth of goods and services from Chinese producers, and we sold $170 billion worth of goods and services to Chinese customers. That made for a $309 billion current account deficit. In other words, we purchase more goods and services from Chinese producers than Chinese consumers purchase from American producers.

How much of a problem is it when there is a deficit, or a negative imbalance, on current accounts? Let’s look at it.

I buy more from my grocer than he buys from me. Our Department of Defense buys more from General Dynamics than General Dynamics buys from our Department of Defense. With just a bit of thought, one could come up …Read the Rest

Source:: AmmoLand