There is a lot of talk about the trade deficit. President Trump started a trade war with China for it. At the same time, he takes on Canada and Mexico, the European Union and Latin America. But what makes it all worse is that the bureaucrats are worsening the situation.
The popular economic idea is that the demand for good and services are thriving economic growth. The reason that the trade deficit and export matters is that it stimulates the domestic demand.
So if we follow this economic mind than the trade deficit is a bad thing.
But we are not living in a free economy. So what would happen if we have a free economy and capital can flow as it is on the most efficient method?
When the economy is completely free consumers and businesses are capable to spend and make money on all possible methods.
But all moments the government meddles with the economy is limiting the methods for the economy to grow. The economy will work best when the most destructive thing is kept out of it. The most destructive is not the trade deficit. The most destructive is the government.