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Deficit and Surplus

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Why the U.S.’s deficit, surplus and debt have an effect on a domestic automotive manufacturing (exporter) and Unemployed individuals

Unemployed Individuals
Unemployment has been a serious problem that need attention and to be fixed. This is the cause of the large deficit in the U.S. because those that are unemployed do not or cannot pay taxes. Instead of the money going to large corporations or wealthy people, they should be investing the money into helping those without work find work. If people are unemployed, production of goods and provision of services falls off, and simultaneously, the people who are unemployed lack the wealth to purchase goods and services. Because of this how can this help increase the U.S surplus or deficit is changes are not made.

A domestic automotive manufacturing (exporter)
The U.S. current account goods and services trade deficit which is balanced by our foreign investment surplus. Trade just means exchanging in which when we export fewer foreigners then they export to us. In all actually The U.S. could be getting compensate for that. By exporting less than we import the U.S. possibly could be gaining more assets such as financial assets short or long term. However, the trade deficit causes our foreign investment surplus and could result from the foreign investment surplus. The trade deficit and investment surplus are determine varies depending on people who choose to export, import and invest. When exports are greater than imports, the nation has to balance trade surplus. If imports are greater than exports, then they have to balance the trade of deficit. The Interest rate is what determines the exchange rate. When the U.S. dollar appreciates, foreign goods (expressed in U.S. dollars) become cheaper and U.S. goods (expressed in foreign currencies) become more expensive (Anandi P. Sahu Ph.D). Prices of goods and services in the United States are rising at the rate of approximately 10 percent annually. For example, Jeep...

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