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  1. #12
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    Quote Originally Posted by Fuchs View Post
    Few per cent of the German GDP are related to trade with the U.S., for example - and the trade is a drain on its resources, not a push to its economy.
    And notice that I did not imply any direct harm to Europe.

    Quote Originally Posted by Fuchs View Post
    All countries that have a positive trade balance with the U.S. are actually feeding it - they could consume their own goods or export to other nations instead. The economic should would just cause short-term adaption costs.
    International Trade Theory 101: The US is a large importing country for many goods. If we no longer purchase those goods, then it creates surplus supply in the exporting country, prices plummet, profits plummet, and the incentive to continue producing plummets. So, no, those countries would not consume their own goods. They would respond by dramatically scaling back production in the short term and closing down businesses over the long term.
    And if the US economy took a dump, then other countries would suffer economic downturns and have less disposable income as well.

    Quote Originally Posted by Fuchs View Post
    Africa and the UN actually get a lot of money from other countries than the US.
    See above regarding disposable income.

    Quote Originally Posted by marct View Post
    You know, Schmedlap, Fuchs is right
    Impossible.
    Last edited by Schmedlap; 07-30-2008 at 03:20 PM. Reason: addition

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