Title: Is a trade deficit a good or bad thing? - Quora
Headings: Is a trade deficit a good or bad thing?
Is a trade deficit a good or bad thing?
Content: A Negative Balance of Trade Hurts America’s Economy
I think we can all agree that America’s economy doesn’t work like it used to—in fact, there’s a strong argument to be made that we’re nearing economic collapse. But all the figures in the world are meaningless without a causal mechanism, so that’s where this discussion of the economic impact of the trade deficit must begin. How does the trade deficit hurt America’s economy? Not only does the trade deficit make America’s economy more fragile by increasing debt, and serve as a vector for economic contagion, but it harms America through offshore outsourcing—specifically, the offshoring of our growth-generating industries. What Is Offshore Outsourcing? Offshore outsourcing is when a domestic company hires a foreign company to do something for them in the foreign country. For example: an American company (Acme Inc) hires a Chinese company (China Corp) to build laptops for them—China Corp builds the laptops in China, and then Acme Inc imports them to, and sells them in America. For the sake of brevity, know that when I say offshoring in this article, I actually mean offshore outsourcing. Now, I know many of you are probably skeptical on this point.