Re:Why Isn’t the Whole World Rich?
by zozbot234 on Wednesday November 23, 2022 @10:10AM
(#33720081)
A trade deficit is an investment surplus, and vice versa. It's not like one is always good or the other always bad, you can't reason like that from a single number.
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Money leaving the country directly translates to lower levels of wealth. An exception would be capital expenditures, in which case it might be good. I was mostly referring to consumption though.
Re:Why Isn’t the Whole World Rich?
by imtringued on Thursday November 24, 2022 @06:20AM
(#33730068)
Ok but why are poor countries financing the rich countries in this scenario?
I mean think about it. Country A borrows from Country B and buys Country B products, which effectively finances Country B companies. This is particularly bad when the imported products aren't physical capital but basic necessities.