Consider This from NPR Trump takes aim at trade deficits. Are they actually bad?
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Apr 3, 2025 
Jason Furman, an economist from Harvard and former top advisor to President Obama, discusses Trump's controversial tariff strategies. He analyzes the implications of high tariffs and the complexities surrounding U.S. trade deficits. Furman challenges the notion that these deficits are inherently bad and highlights their nuanced impacts on the economy. The conversation delves into how expanded tariffs could raise prices for American families and affect global markets, stressing the importance of trade openness and its long-term effects on industries like manufacturing.
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Trump's Long-Standing Trade Deficit Concerns
- Trump has consistently spoken out against trade deficits for decades.
- He claims to have raised the issue on television shows and speeches even in his younger years.
Trade Deficits: Not Always Bad
- Trade deficits with individual countries aren't inherently bad, as preferences and needs vary.
- A large, persistent overall trade deficit can be unsustainable, but the U.S. isn't currently at that point.
Why the U.S. Doesn't Run Out of Money
- The U.S. doesn't run out of money despite trade deficits because dollars sent abroad return as investments.
- The U.S. profits financially from the world because its overseas investments yield more than foreign investments in the U.S.