Originally Posted by
Newpublius
They do not, they subtract from GDP to prevent double counting them in consumption. For instance, do computers deduct from GDP? Or do they make us infinitely more productive?
Remember, a trade deficit just means the foreigners take dollars and instead of spending it on goods, they spend it on investments, or something else. That's fine....
Because the resource allocation is being skewed and badly so I might add and in ways that really make many Americans lives worse off than they otherwise should be.