The U.S. trade deficit is a good thing. Really.

If the United States and Mexico were the only countries in the world, and both countries traded openly with each other, American consumers would still benefit from Mexican imports in order to satisfy our buying power and immense market demand. Conversely, Mexico would still import goods from the United States. Its citizens, however, simply cannot afford to buy things at the same rate and quantity that Americans do from Mexico. If Mexicans suddenly became wealthier, they would likely start buying more U.S. products. That is why one of the best things that can happen to our economy is for other nations’ economies to grow. When they grow, they buy more American products, and we grow even more. This trading relationship holds true for many countries with relatively high-consumption populations.

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As the United States purchases more goods from Mexico, Mexican workers become wealthier, which means they will be able to purchase more goods from the United States. A growing economy in Mexico also means that Mexican workers have less reason to immigrate illegally into the United States. And while U.S. consumers and businesses are buying more cheap goods from Mexico, it gives us greater purchasing power to buy more things and reinvest in our own economy, lifting our own standard of living. Simply put, free and fair trade is a win-win scenario.

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