Episode 87: Why Do We Even Have Trade Agreements, Anyway?
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The Politics of Trade Deficits
The US currently is running a trade deficit of about half a trillion dollars a year, he says. That's because we spend half a trillion more dollars on foreign goods and services than foreigners spend on American goods and services. But that money doesn't come back to the US in the form of foreigners purchasing U.S. goods and services; it comes back by buying stocks and bonds in American companies as American securities. We're good at exporting our entrepreneurial services but not so good at creating new businesses which create jobs for Americans.
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