is probably the most important economic question of the moment.

I'm Noah Feldman. This is The Method,

where I break down hard questions into the ideas and values behind them.

Start with the president's view.

TRUMP: We have a $500 billion trade deficit with China.

TRUMP: It's the greatest theft in the history of the world.

A trade deficit simply measures how much stuff our country is buying, from other countries,

and how much stuff they're buying from us.

That's the number that a trade deficit gives you,

And according to the president, it's a powerful symbol

indicating that the United States when we're in deficit

isn't making enough stuff.

If we don't make enough stuff, runs the argument,

we're going to lose manufacturing jobs.

Manufacturing jobs are what make a country great,

by giving us a good and powerful middle class.

And what's more— the United States should use all of the power at its disposal to try to force other countries

into reducing their trade deficits with us,

because that is supposed to create more jobs.

On the other hand, most economists think that a trade deficit is almost completely unimportant,

because in the end, if we're buying stuff from other countries,

we're buying that with money that we have, that we've earned.

By other countries investing in us ,

and by not focusing on the purchase of stuff,

our economy is freed up to do a lot of other things—

to build the internet, to build technology, to deliver services—

all the kinds of things that our modern economy does that go way beyond stuff.

And after all, the problem with stuff is

someone else can almost always make it more cheaply.

According to this view it's a big mistake to focus symbolically on how much stuff you make.

It's guaranteed to push your economy backwards rather than pushing it forwards.

So do you think that trade deficits are a very useful symbol of making stuff,

and that if you don't make stuff your country declines?

Or do you think that ultimately, economics is about more than stuff,

but actually about goods, services and investment.

Make your choice, and you'll know who you are.

What do you think? Let us know in the comments,

and by all means tell us if you have ideas or questions for future episodes.

Thanks for watching.