what is trade deficit?
97718
For example if USA spends more buying from Chinw than it sells to them, USA has a trade deficit to China.\n\nIn other words USA would owe money to China. \n\nTo resolve the problem the value of the US dollar would decrease to the Chinese Yen.\n\nThis would allow China to regain it's losses by selling items to US at a more expensive price and buying items from US at a cheaper price. This would correct the trade deficit.\n\nHowever this is not what is happening.\n\nhttp://en.wikipedia.org/wiki/Trade_deficit
228212
If the deficit was $319 billion, then our national debt increased by $319 billion.\n\nA deficit is our debt for that particular year. The deficit is then added to the total debt.
509870
That's the definition of GDP.\nGDP = consumption + investment + government spending + net exports\n\nSo, fiscal spending bumps up the government spending part directly.  It also has the trickle effect of putting more money into the economy.  In turn, the consumers will have more consumption and/or investment with the additional income.
61438
No more resulted. How can bringing less money in result in more revenue? The war effort is what raised the deficit the most. We had a budget surplus before Bush took office. The White House has now revised the 2005 deficit upwards to $427 billion. The proposal to extend the tax cuts could exceed 2.3 trillion. The accumulated trade deficit from 1971 through 2003 in dollars not adjusted for inflation is $4 trillion, 45% of which has come in the last three years.
510758
It is when the dollar assumes status of primary reserve currency in the international financial architecture.  It prevents exporting nations from spending domestic dollars they earn from the U.S. trade deficit and forces them to finance U.S. capital surplus.  This sends wealth to the U.S. in exchange for the privelege of financing U.S. debt to further develop the U.S. economy.\n\nThanks for asking this, had never heard of it so I learned something new today!  I just had to look it up when I read it, make sure you weren't making something up.  :)  No offense intended.
851186
The National Debt is the total amount of money owed by the government; the federal budget deficit is the yearly amount by which spending exceeds revenue. Add up all the deficits (and subtract those few budget surpluses we've had) for the past 200+ years and you'll get the current National Debt.\nPoliticians love to crow "The deficit is down! The deficit is down!" like it's a great accomplishment. Don't be fooled. Reducing the deficit just means we're adding less to the Debt this year than we did last year. Big deal -- we're still adding to the Debt. When are we going to start seeing the Debt actually go down?  This comes from some simple research about the debt clock which gets its info from the National Treasury.
363979
"A country's gross domestic product, or GDP, is one of several measures of the size of its economy. Until the 1980s the term GNP or gross national product was used. The two terms GDP and GNP are almost identical. The most common approach to measuring and understanding GDP is the expenditure method:\n\nGDP = consumption + investment + government spending + (exports − imports)"
865480
Trade is a powerful bargaining tool for a country in need of military hardware and technology.  It is a weapon being used by China to force the USA to supply its military.  Americans beware of the future in China's development.
168171
Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time. The Department of Commerce releases GDP data for the U.S. economy on a quarterly basis at 8:30 am EST on the last business day of the next quarter.\n\nThe components used to calculate GDP include:\n\nPersonal Consumption:\n-- Durable goods (items expected to last more than three years)\n-- Nondurable goods (food and clothing)\n-- Services\n\nGovernment Expenditures:\n-- Defense\n-- Roads\n-- Schools\n\nInvestment Spending:\n-- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes)\n-- Business inventories\n\nNet Exports:\n-- Exports are added to GDP\n-- Imports are deducted from GDP\n\nA common equation used to calculate GDP is as follows:\nGDP = Consumption + Government Expenditures + Investment +Exports - Imports
1026354
Bothers me a lot that our budget deficits are being bought like candy by every major asian power.  They take those IOU's, trade 'em for cash, and then by the shoes off our feet.  The more our government spends on useless wars and "homeland security", the more the Asians can buy us legitimately...funny how our war for oil is going to really screw us in that department in the long run.
862005
The deficit. It's still the economy
149263
Trade allows countries to specialize in the good(s) in which they have a comparative advantage (Ricardian Trade Theory). This increases the overall output of the world.
1124702
no not at all.  First of all national deficit is the sum of all deficits including your credit card and national spending.  Secondly national income is the income that comes in not only from tax, tariffs, savings, etc but also from buying and selling of goods abroad in the name of the US government.  \n\nI could go on and on but the key here is that national income is not easy to calculate.  There are hidden / undisclosed accountants that are not publicized and despite what people say, it is still a part of the national income.   When you add all that up, the income is actually a debt. LOL and you owe the government thousands of dollars.   \n\nSorry for the complicated and bad news. LOL
1152192
The United States is running a huge balance of payments deficit by spending more overseas than it exports, which I take it includes its expenditure in Iraq. Also, all Governments borrow and presumably Bush is mortgaging the United States' future.\n\nAs an Englishman I am all too conscious that the United Kingdom's power in the world was ruined by its debt funded expenditure on the First and Second World Wars. The Cambridge historian Correlli Barnett wrote a series of books (e.g. "Audit of War") to point out that in the end there is no point in exercising miltary power at the expense of capital investment.
139854
These other answers are wrong. A nation's debt is the accumulation of each year's deficit or surplus. It is money owed by the nation's government, not all its people. The national debt is owed by the nation to its people, its banks, other governments, people in other countries, etc. Thinks of government bonds. When you invest in a government bond you give money to the government in return for the government's promise to pay you back even more money later. So that is an example of the government being in debt to you.
409087
balance of payment is the document which has a complete record of the transactions that take place between the home country and rest of the world(ROW)\nit consists of the balance of trade which can be adverse , favourable or balanced , and thus by studying it we can correct deficits if any.\ni hope this helps!
907750
GROSS DOMESTIC PRODUCT