United States, Professor, University California discussed on Money For the Rest of Us - 144: Trade Deficits Aren't Aways Bad. Trade Wars Are

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That that help or hurt the mexican economy what about the us economy peter navarro and economics professor at university california at irvine he's the head president trump's newly formed white house national trade council and he would argue the sale of the draw newton dear a tv hurt mexicans economy and help us no no maybe he wouldn't argue that an amazing this on his analysis trump's economic plan to sit back from september twenty sixteen before he was appointed and here's what he wrote in and that economic plan quote when matchup exports are negative that is when a country runs a trade deficit bite and porting more than it exports this of tracks from gross so he would say a trade deficit when you import something that that so tracks from economic growth so hurts the economy he's basing his analysis on and accounting identity that is you just by government statisticians to esta main gross domestic product and it would td p that measures the monetary value of the country's output in terms of its production of goods and services and it's so touched produced output but the way that they can i could then i've i've mentioned this numerous episode of the show is they can look at what was spent and they can look at them the amount of income burnt but the formula this accounting identity for calculating td p based on what was spent it's consumption so right how also owns and that's meant my business is what are they investing in terms of building was no equipment it's government spending and it's exports would sold to foreign countries our businesses are household informed countries and then backs out import so it's consumption plus investment plus government spending plus exports minus import now the idea is that my back you know.

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