The "Trade Deficit" Explained

A great article by Walter Williams talks about what a trade deficit is. What we see in the news about a trade deficit with China or other foreign countries does not make economic sense. We buy goods from a company, we exchange money for those goods. We don't expect that company to buy something back from us to give us our money back, do we? It's the same principle on a national scale. Understanding accounting helps, and Mr. Williams has excellent examples to clarify his points. Read the article and see if it changes your mind about trade deficits!