# Is a trade deficit such a bad thing? **URL:** \ **Category:** Great Debates\ **Created:** [March 15, 2018, 11:42am UTC](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599 "2018-03-15T11:42:23Z")\ **Posts on this page:** 4\ **Page:** 2
**Author:** ![Johnny\_Ace](https://avatars.discourse-cdn.com/v4/letter/j/6bbea6/32.png) [@Johnny\_Ace](https://boards.straightdope.com/u/Johnny_Ace)\ **Post date:** [March 17, 2018, 4:13am UTC](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599/21 "2018-03-17T04:13:00Z")
> [@Pleonast](#): > > Exactly right. > > We really need to make [double-entry bookkeeping](https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system) a standard part of high school curriculum. (I’d even replace geometry; it’s more important.) There are so many economic fallacies that are eliminated by understanding it. Irony of all ironies…guess what field Trump’s BS was in? (No, not BS…he has a Ph.D. in that…as in Piled higher, and Deeper…) Economics. ---
**Author:** ![Mosier](https://avatars.discourse-cdn.com/v4/letter/m/7ea924/32.png) [@Mosier](https://boards.straightdope.com/u/Mosier)\ **Post date:** [March 17, 2018, 6:48am UTC](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599/22 "2018-03-17T06:48:37Z")
> [@octopus](#): > > Why? It’s not like American labor is intrinsically more valuable than immigrant or overseas labor. You’re wrong, there. Americans are paid quite a lot more than Chinese to extract minerals from the ground, which makes their labor intrinsically more valuable (or expensive, if you prefer). To use American steel over Chinese steel in a free market would be a good way to get out-competed by your rivals and driven to bankruptcy. Why not buy raw materials cheaply, and use those raw materials to design and make more valuable stuff? The alternative is to either pay Americans as poorly as the Chinese are paid, or spend more for raw materials than they’re worth. ---
**Author:** ![octopus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/octopus/32/3716_2.png) [@octopus](https://boards.straightdope.com/u/octopus)\ **Post date:** [March 18, 2018, 6:28pm UTC](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599/23 "2018-03-18T18:28:31Z")
> [@Mosier](#): > > You’re wrong, there. Americans are paid quite a lot more than Chinese to extract minerals from the ground, which makes their labor intrinsically more valuable (or expensive, if you prefer). To use American steel over Chinese steel in a free market would be a good way to get out-competed by your rivals and driven to bankruptcy. > > Why not buy raw materials cheaply, and use those raw materials to design and make more valuable stuff? The alternative is to either pay Americans as poorly as the Chinese are paid, or spend more for raw materials than they’re worth. Not wrong at all. Just because someone pays more for something doesn’t mean the intrinsic value is higher. It just means they paid more. Labor has no set intrinsic dollar value. ---
**Author:** ![WillReadmore](https://avatars.discourse-cdn.com/v4/letter/w/6f9a4e/32.png) [@WillReadmore](https://boards.straightdope.com/u/WillReadmore)\ **Post date:** [March 18, 2018, 8:26pm UTC](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599/24 "2018-03-18T20:26:01Z")
> [@octopus](#): > > Why? It’s not like American labor is intrinsically more valuable than immigrant or overseas labor. You need to explain this idea you have. It sounds like you’re getting ready to suggest something, such as paying steel workers the same as steel workers in China, or whatever. And, that makes no sense, obviously. So, what are you thinking? [Previous page](https://boards.straightdope.com/t/is-a-trade-deficit-such-a-bad-thing/810599.md?page=1)