Professor: Tariffs won’t fix trade

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00:00Yeah, just one thing to follow up on what Thomas said.

00:04The idea that opening up foreign markets somehow is going to change the trade balance is not correct.

00:13As I said, the trade balance is determined by the gap between savings and investment, period.

00:22It's domestically produced.

00:24It's created domestically.

00:26That's why we have the imbalance that we have.

00:30And it happens.

00:31It's a very good thing to have in the United States because it's very easy to finance.

00:36We have no problem financing it.

00:38And it allows Americans to do what?

00:41To consume way more than they produce.

00:44It's a good deal.