Class summary 10/31

I give “China” 10 dollars

Four ways to spend the 10 dollars:

a.     buy American goods

b.     buy American assets

c.      buy Italian – food & assets

d.     eat the money

In someway, the money will come back. (Trade balance)

There is no literally thing such as positive trade balance or negative trade balance. The trade balance is 0

Trade deficit does not cause problem

Difficulty(and pedantry): Abolition of slavery in American south

After all, you can readily claim that most Americans wouldn’t even be aware of a tax that small, while the “winners” would be fabulously happy

ANY Economic Change raises the same issue. As we have and will continue to explore, trade is simply a non-technical form of production

Emergence of vaccines threatens to put some surgeons out of business

Our environment standards cause 2% of GDP