iPhone and Trade Deficit
An interesting analysis of how the iPhone contributes to the trade deficit with China, reported here:
He says that the methodology of calculating trade deficits may result in conclusions that are less useful than commonly thought.
Sad, but this story is being picked up by agencies including NPR, where I heard it, it’s message corrupted into simply “the iPhone adds billions to the US trade deficit”, the very postulation the author is disproving.
The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled.
Please see the thread on ‘Asymco on owning factories’.
The measure of the worth of a product is how much people are willing to pay for it, not how many people will buy it if the price is low enough.