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Why are trade deals good for America?

By Terry Savage on March 29, 2016 | Wild Card

I am wondering if you could explain why international trade pacts are a good thing for the American workers
and American economy as a whole. According to some info that I hear, we have about an annual 3/4 trillion Dollar deficit in our trade with the rest of the world. If we shut our borders to imports and exports, would that not leave a lot of money in this country which used for other things? This country may then have to re-build a steel industry (lots of good jobs), our own electronics manufacturing with more good American jobs etc. Why would that be such a bad idea? We could still have bilateral agreements with other countries when that is a necessity and/or to our benefit.

Terry Says:  Please read my recent column on this subject.  Basically, we all benefit in a growing economy when as individuals, as businesses, and as countries we do what we do best and most efficiently at the lowest cost.   Then we create value in our own products that others can buy– and we can benefit from low cost “stuff” imported from other countries.   Of course, that assumes that all parties to trade play by fair rules.



a personal
finance question