Our Prime Minister is busily trying to increase our trade with China. He points to a growing trade volume, in both directions. One thing not clearly mentioned is, what the balance of trade is.
The last graph I saw, the trade volume went up more than five times over some five years.
In the same graph, our purchases were more than five times our sales.
So, when we trade with China, we increase our trade deficit. Linearly.
We also probably eliminate Canadian jobs. Even our hockey skates are made in China, but “designed in Canada.”
Why is this such a great idea? Is it because the Chinese want our tar sands oil, and our Prime Minister likes Alberta more than Ontario?
That’s not really a dumb question, is it?