Infographic: What Is A Trade Deficit?

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Introduction (Via Good)
As governments around the world continue to react to the economic downturn, some people are warning against trade protectionism (i.e., imposing taxes and tariffs to make importing goods into a country more difficult). Indeed, the first draft of the stimulus bill had a “Buy American” provision that would have forced some companies receiving stimulus money to only buy U.S.-made goods. The reason for wanting increased protectionism is fear of a trade deficit, which is when a country imports more than it exports. Some economists argue that a trade deficit is detrimental to our economy, since we are paying to support jobs overseas, rather than at home. Other economists believe that the money sent overseas ends up coming back.