Trade Deficit?ByRaymond D. Matkowsky
This is an opinion piece that will be quite short. Everybody has the right to make up their own minds about how they feel about the trade deficit the United States has with the rest of the world and whether or not tariffs would resolve the problem. I for one do not believe it is a real problem that needs a tariff solution. No one is taking advantage of the United States. I also believe a trade deficit demonstrates that the United States has a strong economy.
Prepare for Tariffs
As a business person from a large or small company, you will be most affected by tariffs and have to decide for yourself. The fact that you can decide for yourself makes the United States great. Don’t let anyone tell you otherwise. However in considering the problem, keep in mind that the situation will most likely reset to the present status quo. It may be several years in the future. However you have to plan for the future. Take this possibility into account when preparing business plans. Also, make your opinion known strongly with those in charge and the general public. It is your right!
Population Driven
When it comes to trade, a country with a large population will buy more goods because they need more than a smaller nation. As of January 1, 2025 the population of the United States (US) was 374,275,807. The United Kingdom (UK) is not part of the European Union (EU) however it has the largest estimated population in Europe of 68.3 million. The EU as a whole has an estimated population 744.5 million. This doubles the US population. However, the EU is made up of 27 countries. Although it varies significantly, the average population for an EU country is 9 million. For the most part though, each country makes purchases calculating individual needs.
It is unreasonable to expect a smaller country to purchase an equal amount of goods that a larger one would. You also have a country’s wealth and culture to consider. There may be products they do not want or need. Because of these factors there will always be a trade deficit.
Strong Economy
A deficit by itself is not a bad thing. It means that you have a strong economy. It means that you have a population that needs more and could afford to buys more goods.
If you have any comments, let us know. Email me at rdm@datastats.com. We will try to print it in our next newsletter.
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