True Trade deficit with China nowhere near huge number stated?

[fisheerman]

If this product adds that much what about all the other products?

What would the true number really look like and would it get as much attention?

maybe they should come up with a real way to handle the "new economy"

Not being an expert this looks like it would make the trade deficit number look like guess work?

http://www.npr.org/blogs/money/2010...s-1-9-billion-to-our-trade-deficit-with-china

 

[halik]

Wow excellent read, it would make sense to calculate your output on value added basis.

 

[soccerballtux]

Destroying the middle class is value added?
The fact is, we don't need as many engineers as we used to need widget machine runners.

 

[Anarchist420]

Trade deficit doesn't matter. If we're getting better products for lower prices from foreign countries, then a trade deficit can be good.

 

[zephyrprime]

It seems like the way we calculate trade deficits would mean we overstate deficits with countries like China and understate deficits with countries that provide a lot of raw materials (middle eastern, south american, and african countries).

 

[piasabird]

What will we do when China starts a war?

 

[Jhhnn]

Interesting POV. I doubt, however, that changes in methodology would change the total balance of trade deficit much at all. The net effect would still be very much the same, if more accurate in the details.

It doesn't matter if American jobs and capital are being offshored to China, Taiwan, Malaysia, Korea or wherever- the effect on employment in the US will be the same.

 

[IronWing]

Trade deficit doesn't matter. If we're getting better products for lower prices from foreign countries, then a trade deficit can be good.

Says the kid just finishing school. Let us know how you think about it when you realize that manufacturing and connected jobs that went to China are the very jobs you might have gotten. Also reflect on the fact that as a freshly minted graduate, you don't qualify for unemployment benefits. Your raman days might be just beginning.

 

[Matthiasa]

Could have gotten if he hadn't received even a basic education. Most factory work pays little compared to what can be had in the trades, or professional environments.

Well unless your counting some of the massively overpaid union factory workers, in that case yeah people there tend to make "decent" amounts.

Honestly most people here aren't will, nor could afford to live on what the factory workers in say china are making.

 

[Narmer]

Here is something else that might be interesting:
http://www.voxeu.org/index.php?q=node/5635