Sharing Knowledge in Smallcaps

[12yearplan]

President Trump seems to think the country with a trade deficit automatically “loses” to the one with a surplus.

I wish his advisors would educate him on this.

Trade deficits and populism have gone together for centuries.

Serious economists, back to Adam Smith, would insist that seeking a surplus with every trading partner is not “winning.” It is absurd. This is not even intelligent mercantilism, which would focus on the overall balance. Yet, particularly with free capital flows, overall balance is a foolish goal and one that trade policy cannot achieve. It is incredible that such primitive ideas rule the most sophisticated country on earth.

“the forces pawing the ground for a fight with China are far stronger, and the reins on them far weaker, than was the case in the NAFTA and trans-Atlantic scuffles.”

http://www.mauldineconomics.com/frontlinethoughts/the-trade-deficit-isnt-the-boogeyman