The trade deficit: Does it really matter?

CNN's Christine Romans explains what a trade deficit is, and why the U.S. trade deficit alone should not scare you.

[jimzediana]

Hey CNN a Trade Deficit is the amount by which the cost of a country's imports exceeds the value of its exports 0:38 . Since the measure of the economy is GDP, having more exports will result in a larger GDP. Yes this is only one factor but it is a factor (CNN hints at this 2:04). In report today on unemployment CNN said Trump needs to get 2 million jobs gained and since we have only 4% unemployment then to create jobs (and hence increase GDP) we need to reduce trade deficit. More jobs equals more production which (shock) is another factor into GDP! Yeah cheap goods from China 2:40 !

[greenfrogrx]

Thats right! Whatever tariff trump puts on imports. thats how much consumers has to pay extra to buy them. You want to buy iphone for 2000 buckaroo !! If anything work on exchange rate, not import tax.

[drattler]

So then lets do NOTHING surley the world will continue to give us products for our dollars WELL MABY

[artemisrafti]

Does anyone see that America’s massive trade deficits are basically to lure other countries into dependency upon it? After all, huge trade deficits for America mean Europe and Asia have trade surpluses. That means Europe and Asia are the ones with surpluses to lose should America decide to balance its trade. But what is this all about? I think America has this global strategy which is bribing foreign countries with one-sided trade deals, giving them open access to the huge US market. In return, foreign countries let America have basing rights on their land and let America run global foreign policy. No way would a superpower like America be making such one-way trade deals in favor of its trading partners unless it is part of a grand global strategy to cement American global power.

[laopang]

American consumers will expect much higher prices for basic goods if we block trade. Also, if US wants to stop trade imbalance, stop buying from all foreign countries. It is up to you .... no one forced anyone. Also, make the products that the world wanted to buy.

[johnsradios]

This is what neo-liberals and conservatives have in common. They both believe in free trade. There you go.

[newproblemsolving]

Please someone teaches Trump about this.