Tags: james lankford | trade deficit | foreign investment | mexico

Sen. Lankford: Trade Deficit an 'Encouraging Sign' for US

Image: Sen. Lankford: Trade Deficit an 'Encouraging Sign' for US
Sen. James Lankford (AP Images)

By    |   Tuesday, 15 August 2017 10:34 AM

Buying power and foreign investment are two symptoms of running a trade deficit, but they're also indicators of a strong economy, an "encouraging sign" for the U.S., Sen. James Lankford wrote in a column for The Washington Post.

Lankford was responding to President Donald Trump's objectives in renegotiating the North American Free Trade Agreement (NAFTA), agreeing with most of them, but highlighting what the Oklahoma Republican considers a myth about trade deficits.

"Trade deficits are not always bad for U.S. workers and consumers, nor should they remain the focus in NAFTA renegotiations," Lankford wrote in the Post.

First, Americans have an "immense buying power" over other countries — namely Mexico — which means, naturally, we're going to purchase more from other countries than vice versa.

Improving economies of other countries benefits the U.S., Lankford writes.

"A growing economy in Mexico also means that Mexican workers have less reason to immigrate illegally into the United States," Lankford wrote. "Simply put, free and fair trade is a win-win scenario."

Second, foreign investment also tips the scales of the trade deficit, but again, this should be considered a good thing; "foreign cash stimulus is a positive for our economy," Lankford writes.

"Investments such as these are indicative of a strong economy," Lankford wrote. "It should be an encouraging sign that we are by far the world’s largest receiver of foreign direct investment.

"Our trade deficit means, in part, that U.S. companies are considered to be a better investment than companies in other countries. More investment in American businesses means more jobs and higher wages for American workers," Lankford wrote.

© 2018 Newsmax. All rights reserved.

   
1Like our page
2Share
Politics
Buying power and foreign investment are two symptoms of running a trade deficit, but they're also indicators of a strong economy, an "encouraging sign" for the U.S., Sen. James Lankford wrote in a column for The Washington Post.
james lankford, trade deficit, foreign investment, mexico
265
2017-34-15
Tuesday, 15 August 2017 10:34 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved