Nations Cannot Win or Lose Trade Wars

Nation-states have no resources of their own. They redistribute the resources of their citizens. Nation-states can neither win nor lose when they play with other people's resources. Tariffs and other weapons of trade wars disrupt normal trade; helping one group at the expense of another. Illusion of Trade Deficits The concept of trade wars begins … Continue reading Nations Cannot Win or Lose Trade Wars

Economics of Invasion

More people added to the population of the country adds nothing to its economy, unless they bring capital. Invaders generally don't bring capital, they consume it. Television screens have been filled with images of a large group of people marching across Mexico with the stated intent of seeking asylum in the United States. Many of … Continue reading Economics of Invasion

Trade Deficits: An Introduction

President Trump’s threat to impose tariffs on steel and aluminum has triggered a blizzard of articles for and against the proposal. Instead of parroting what has been said by others — mostly empirical evidence, I want to give you the tools with which to understand the issue behind the proposed tariffs: “trade deficits.” Definition To … Continue reading Trade Deficits: An Introduction