Question by jonathans: How can our economy expand if we constantly have a trade deficit?
I did some research, and apparently the United States has been running a trade deficit since 1980. How is it possible that our economy has expanded , if we sell less things than we buy? Also, is it possible for all countries to have an expanding economy at the same time, and if so, where does that wealth come from? I would think that there is a finite amount of wealth in the world, and for one country to get richer, another would have to get poorer.
Answer by Neil
Well, Capitalism is a sustainable system, but it’s designed to have ‘roll-over’ of debt, so you need deficit to ‘suck money’, that moving money, helps you expand the economy.
And yes it’s possible to have 100% growth, if everybody is freely investing money, and expanding the roll-over.
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