Question: Do trade deficits matter?
Bob’s Answer: NO
It’s not worth worrying about a trade deficit because it just means we import more than we export. While we have a large current trade deficit with China in particular, a strong economy is more important than a trade surplus. Our current deficit is largely due to the strength of our economy. While China’s policies create an even larger trade deficit, growing the economy should be our goal, not restricting trade or foreign ownership.