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Posted on: May 6, 2025 at 11:31:06 CT
Seagull MU
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Do those who think this also think this is the forever paradigm? That the US will just exist indefinitely as a consumer economy and other nations will just continue to exist as producer economies with lower standards of living and wages?
Nothing lasts forever. Markets and economies change all the time. Eventually, the US won't have the world's reserve currency, so trade deficits would have a negative impact on the currency. However, for now we enjoy the benefits of having it, so may as well take advantage of it.
Do you feel this is sustainable?
As long as we have the world's reserve currency, yes. If that is lost, then a shift would need to happen, and firms would make that switch voluntarily because they don't want to lose their competitive edge.
Is it best for the US in the long-term? Being dependent on other nations and peoples for critical items as well as non-essential?
Yes. It isn't "dependence". It may be reliance, but those countries rely on us for critical items, as well. Not every country can produce everything. That's why trade is important and weaponizing it is dangerous.