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Trade Deficit Insight
- The US trade deficit reflects higher consumption than production, demanding imports to meet the excess.
- Tariffs won't fix this; the core issue is the demand-supply imbalance, worsened by budget deficits and tax cuts.
Norway's Strategic Deficit
- Norway strategically ran trade deficits to invest in North Sea oil exploitation.
- This demonstrates that trade deficits aren't inherently bad; their value depends on the underlying reason.
Overlooked Service Exports
- President-elect Trump focuses on goods trade deficits, overlooking the US strength in service exports.
- This might distort the overall trade balance picture since service exports are difficult to measure accurately.