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The US is richer because of Europe—no matter what Trump says

By Quartz

President Donald Trump recently questioned the value of the long-standing United States-Europe alliance. When asked to identify his “biggest foe globally,” he declared: “I thinkRead full story

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  • Amazing that this actually needs to be explained.

  • Of course both benefit from trade;but that is not the point;that the US gets richer by trading with Europe is true but is that a statement about fair trade;not at all .....fair trade is another issue and the media reflecting a bias for whatever reason refuses to focus on the real issue.....and then complains when called Fake news.

  • Absolutely, we’re economically stronger together. The data backs it up. Yet another mistaken view of Trump’s.

    “In 1979, economist Paul Krugman provided a clear answer that would eventually win him the Nobel Prize in economics. The first part of his answer was simple but important and boils down to the fact that consumers benefit from having a wide range of product varieties available to them, even if they are only small variations on the same item.

    For instance, in 2016 the top US exports to the

    Absolutely, we’re economically stronger together. The data backs it up. Yet another mistaken view of Trump’s.

    “In 1979, economist Paul Krugman provided a clear answer that would eventually win him the Nobel Prize in economics. The first part of his answer was simple but important and boils down to the fact that consumers benefit from having a wide range of product varieties available to them, even if they are only small variations on the same item.

    For instance, in 2016 the top US exports to the EU were aircraft ($38.5 billion), machinery ($29.4 billion) and pharmaceutical products ($26.4 billion). The top imports from the EU seem almost identical: machinery ($64.9 billion), pharmaceutical products ($55.2 billion) and vehicles ($54.6 billion). Although the product categories clearly overlap, there are important differences in the types of pharmaceuticals and machinery that are sold in each market. Consumers benefit from having all these options available to them.

    The second part of Krugman’s answer was that, by producing for both markets, companies in Europe and the US could reap greater economies of scale in production and lower their prices as a result. This has been found to indeed be what happens when countries trade. And more recent research has shown that increased foreign competition can also lower domestic prices.

    These benefits have been quantified. For instance, the gains to the US from new foreign product varieties and lower prices over the period 1992 to 2005 were equal to about 1% of US GDP—or about $100 billion”

  • To even propose that the U.S. is taken advantage economically by other countries is laughable. In almost every trade agreement involving the country, the United States has set the terms of agreement, sometimes through diplomatic means and often by force. Even when we talk about the outsourcing of jobs to places like China or Bangladesh, we are still talking about a benefit to the American consumer- the outsourcing of harmful pollutants that result from production, outsourcing of worker deaths and

    To even propose that the U.S. is taken advantage economically by other countries is laughable. In almost every trade agreement involving the country, the United States has set the terms of agreement, sometimes through diplomatic means and often by force. Even when we talk about the outsourcing of jobs to places like China or Bangladesh, we are still talking about a benefit to the American consumer- the outsourcing of harmful pollutants that result from production, outsourcing of worker deaths and a much cheaper end-product that more Americans can afford. America is a wolf that’s desperately trying to fit into sheeps’s clothing, but it’s not hard to see through the BS

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