How do we reverse the current massive trade deficit?
We sold Iran a bunch of F14's that they cant fly because we wont give them parts. So we made a good bit of cash on the deal but they dont have much to show for it. Overall we are now 3rd in arms sales worldwide because of things like this. Another good example is Venezuela they got a similar deal. So they buy their rifles from Russia. We need to make peace with all these guys and get back into the arms sales gig. Given massive trade deficits with China and the world we need to get back into high coin arms deals. I also support Blackwater type companies full of our exmarines etc being hired out to other countries for their wars. I think it would be a great thing for our economy if we get into the mercenary thing. We got no manufacturing base anymore nor do we have skilled labor. We are born to fight. Lets put our God given skills to work. Every kid in america can/should have access to firearms and all the thugs could go do drive bys in Somolia and pay taxes.
- ram456456Lv 51 decade agoFavorite Answer
Reduce the trade deficit? Well, how much do want to pay more money for computers, tvs, dvd players, automobiles. Got China, keeping yuan artically low to situmlate a exporting advantage so they can acculate hard dollars to save. The dollar will slowly fall against the other currencies that will slowly reduce the trade deficit, and will make it easier to export. Your comments of selling weapons is morally wrong, and the taxpayer subidising this insane selling of weapon is disgusting. Trade deficits will come down in time because China will have to increase the yuan so they can stablize the countryside to increase domestic compsumtion. The ways to reserve the trade deficit is simple economics 101 traiffs, and captials controls will reduce the trade deficit quickly, but those policy destroying the economy, and the efficency of the workforce. Forgien investment factors in too is better for the economy than traiffs, captial controls, other distorting incentives
- TELv 51 decade ago
Our economy is booming and a trade deficit is not bad for us because the economy is so strong. As a matter of fact we are better off with a trade deficit, because with that comes foriegn investment. That means other countries pay for our development.