Trade Deficits

A trade deficit occurs when imports are greater than exports.

The concept relies on the erroneous idea that statistics from arbitrary political boundaries are valid.

For instance, no one talks about the trade deficits between cities within a country, or between two households.

“If U.S. imports are greater than exports, they must be paid for somehow, and the way they are paid is that foreigners invest in dollars, so that there is a capital inflow into the U.S. In that way, a big trade deficit results in a zero payment deficit.”
Murray Rothbard, Making Economic Sense

However there is a point that needs to be understood: so long as government is in the immoral business of dictating to the people what they must use as money, there will exist economic problems.

What individuals do not freely choose does not benefit them.

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