Which is more destructive to the U.S. ? The budget deficit (domestic spending) or the foreign trade deficit(?

We have too many poor people.

Neither. Both are neutral to the overall economy, they just describe financial flows in the economy without necessarily being destructive.

The economy’s financial flows are a closed system, which means that one sector’s deficit is another’s surplus, and vice versa. There is no way around it, just as it is impossible for every country in the world to have a trade surplus; at least one country must have a trade deficit for the others to have surpluses.

This relationship can be summarized as follows:

Government Deficit + Private Sector Balance = Trade Balance

If the budget deficit increases with the private sector balance remaining constant, the current account deficit must deteriorate as a result of capital inflows financing the government deficit, or in other words, foreign investors buying US government bonds.

Deficit is an overgassed balloon- Paul Krugman