This chapter discusses some of the goods we encounter in our daily lives from across the Atlantic. Tangible items (like a car, jar of olives, or medication) are naturally relatable and are present in many sectors of the highly developed American and European economies. There are examples of how individuals choose products, and a discussion of what we really mean when we talk about modern trade. The car in your garage or the plane that took you on vacation last year were not made from scratch in a single location and shipped abroad; parts cross the Atlantic as inputs and return as finished products. A trade deficit is not like a checking account, irrespective of what some politicians claim. Most people are comfortable with running a trade deficit at their local supermarket, and if someone in a distant land wants to subsidize your purchase in Seattle, that is not necessarily a bad thing. Americans buying more goods from Europeans than they sell, while selling more services to Europeans than they buy, is not harmful or destructive in any way. This section also provides examples of how different approaches to addressing a trade deficit can impact employment and consumers.

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Tangible Stuff

  • L. Johan Eliasson

摘要

This chapter discusses some of the goods we encounter in our daily lives from across the Atlantic. Tangible items (like a car, jar of olives, or medication) are naturally relatable and are present in many sectors of the highly developed American and European economies. There are examples of how individuals choose products, and a discussion of what we really mean when we talk about modern trade. The car in your garage or the plane that took you on vacation last year were not made from scratch in a single location and shipped abroad; parts cross the Atlantic as inputs and return as finished products. A trade deficit is not like a checking account, irrespective of what some politicians claim. Most people are comfortable with running a trade deficit at their local supermarket, and if someone in a distant land wants to subsidize your purchase in Seattle, that is not necessarily a bad thing. Americans buying more goods from Europeans than they sell, while selling more services to Europeans than they buy, is not harmful or destructive in any way. This section also provides examples of how different approaches to addressing a trade deficit can impact employment and consumers.