Tweet Scott Sumner thinks that trade deficits have eventually to be repaid. I think he’s mistaken – at least on any meaningful definition of the word “repaid.” In practice some portion of a trade – or, current-account – deficit must be repaid. For example, the $1,000,000 that Mr. Nonamerican lends to Uncle Sam when Mr.
Tweet Here’s a letter to an economics graduate student who asked to remain anonymous: Mr. T: You accuse me of “doing a disservice” to you and other of my fellow economists by “over-simplifying our theoretical understanding of trade.” You insist that the “exceptions shown by theory to [the case for] free trade should not be
Tweet Arguing with a protectionist is like arguing with a man who is almost totally blind but who believes himself to have unusually superior vision. This sad and unfortunate creature sees only a handful of large, bright images that dance immediately in front of his nose and yet he is convinced to his marrow that
Tweet Pictured here is a banner ad that ran across the top of my Cafe Hayek page earlier this morning. (And here’s the page that I got when I clicked on the ad.) Note the sales pitch for this boot-merchant in the banner ad: “Designed in America, Made in Italy.” What a splendid example