The trade deficit: Myth or catastophic reality?

posted by
July 14, 2011
by Neal Reynolds  
Posted in Commentary

"Free-market economists argue that there is no such thing as a trade deficit since all dollars spent overseas must eventually come back to purchase domestically produced goods and services, thus creating jobs in exchange for the ones that were lost due to the foreign purchases. But there is a huge exception to this rule that these economists overlook: The dollars that were sent overseas can instead be used to purchase our assets – assets which in many cases we didn't work for but inherited from the labors of previous generations ... or nature itself." (07/14/11)  

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