2018年CRI U.S. economist: Trump should be proud of trade deficit（在线收听）

Don Boudreaux, US economist at George Mason University in Virginia explained that a trade deficit is actually a good thing for the country, and that US tariffs eventually hurt Americans in the end.

“Trump administration should be proud of trade deficit, rather than ashamed of it and try to prevent it,” he told CGTN, adding that trade deficit is a symptom of success.

Earlier, the economist signed an open letter to US President Donald Trump along with more than 1,100 other economists, calling his tariffs policy a mistake. 

“Hopefully not only people in the administration, but whoever read the letter can be better instructed about the basic principle of economics, that is, trade makes us richer…not because we export…but we import,” he said to CGTN.

“All potential countries which can invest, they say ‘America is a good place to invest, let's invest in America.’ In order to invest in America, foreigners need dollars. To accumulate those dollars, they buy fewer American exports, that caused our trade deficit,” the economist explained.

“But dollars don’t stayed abroad…they come back to America as investment. Why should we be upset if foreigners want to invest here? We should be pleased, we should be proud. Moreover, that investment helps our economy,” he added.

“[Trade tariffs] do hurt foreigners too, but they ultimately are paid for in large part by Americans,” he said.