Okay that’s actually another thing I don’t understand, don’t import and export values kinda have to match due to the fact that trade is an exchange?
Like maybe not 1-1 for every country we’re trading with, but ultimately you’re trading labor performed in one place for labor performed in another, and doesn’t that all ultimately have to even out?
I do not understand economics it’s dark magic and seems to just conjure results out of the void. Only in economics are obvious good things like “My money is worth more” bad actually.
But the capitalist profits are already accounted for when measuring trade balance. Obviously the capitalists are taking a cut on every transaction, but that is technically still money going one way or the other
Yes but somtimes money just apears from thin air. So coutry a can buy a shipment of grain from coutry b and conjure money to pay without an equivalent sale to any other coutry.
Which could be useful if the US was an export economy.
The US is a net importer but not by an enormous margin, and it's still the second biggest exporter in the world.
Okay that’s actually another thing I don’t understand, don’t import and export values kinda have to match due to the fact that trade is an exchange?
Like maybe not 1-1 for every country we’re trading with, but ultimately you’re trading labor performed in one place for labor performed in another, and doesn’t that all ultimately have to even out?
I do not understand economics it’s dark magic and seems to just conjure results out of the void. Only in economics are obvious good things like “My money is worth more” bad actually.
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It doesn't really even out because the buyer isn't paying only for labor and production cost, but also for the capitalist to make a profit.
But the capitalist profits are already accounted for when measuring trade balance. Obviously the capitalists are taking a cut on every transaction, but that is technically still money going one way or the other
Yes but somtimes money just apears from thin air. So coutry a can buy a shipment of grain from coutry b and conjure money to pay without an equivalent sale to any other coutry.