The U.S. trade deficit: It’s time to dump do-it-yourself economics and go back to basics

Quick Summary:

The Trump admin and critics alike seem unaware of a key mechanism that governs the magnitude of a trade balance.

As a result, the trade debate has turned into a futile filibuster, highlighting the dangers of do-it-yourself economics.

The identity tells us that if savings are less than investment, the gap must be filled by a trade deficit.Both Mr.

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Article Details

Author / Journalist: Steve H. Hanke, Caleb Hofmann

Category: EconomyBusiness

Markets: United States

Topics: Economy Donald Trump Tariffs and trade Finance Tariffs Commentary International trade Trade surplus Trade balance Economics Trump admin Trade deficit

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-18 @ 15:44:37 (2 weeks ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 772 words

Reading Time: 5 minutes read

Sentences: 4 lines

Sentence Length: 193 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 27979616

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Official Website: fortune.com

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