tag:blogger.com,1999:blog-18947592.post6980580736339177801..comments2023-11-06T00:01:30.085+13:00Comments on New Zeal: Trade Deficit? So What?Trevor Loudonhttp://www.blogger.com/profile/17040453691836232676noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-18947592.post-72800828484884092562007-07-22T14:19:00.000+12:002007-07-22T14:19:00.000+12:00"If you consistently acquire more value than you'v..."If you consistently acquire more value than you've created, you will go broke"<BR/><BR/>Only if you do it on credit Camryn<BR/>Of course we can't consume more than we create. The joy of capitalism is that we can get a lot for bugger all effort.<BR/><BR/>I think the point of the article is that comparing inward and outward flows of cash and credit tells you very little.<BR/><BR/>The reakl measure is what can you ppurchase with X amount of labour ie how long does it take for the average worker on the average wage to purchase a given commodity-Big Mac, 3 bedroom house etc.<BR/><BR/>That is the best measure of a countries economic health.Trevor Loudonhttps://www.blogger.com/profile/17040453691836232676noreply@blogger.comtag:blogger.com,1999:blog-18947592.post-70971115669097979072007-07-21T09:05:00.000+12:002007-07-21T09:05:00.000+12:00Yeah, but if you substitute "everyone else but you...Yeah, but if you substitute "everyone else but you" for Bunnings in your example, then you'd eventually hit real problems. <BR/><BR/>The money you own is reward for value you've created. If you consistently acquire more value than you've created, you will go broke. Perhaps you need to change what you create so that it's as desirable as the things you want. You need everyone to want to buy something from you that they value as highly as you value the BBQ and to repeat this across all transactions. You will still both be better off, but sustainably so.<BR/><BR/>The complexity arises from bringing this up to the national level. The national trade deficit is just the aggregation of many individual trade deficits, but unfortunately we are effected as a group. We have a shared currency etc. If the whole word used a single system (ideally, a free market one) then trade deficits between NZ and the RoW would be no bigger deal than Northland's deficit or surplus with Southland. The system should support each individual economic entity (i.e. a person or family) managing it's own trade balance.Unknownhttps://www.blogger.com/profile/14606686198036798108noreply@blogger.com