Trump’s economic illiteracy


President Donald J. Trump said (of course using his Twitter account), that “We [i.e. United States] are on the losing side of almost all trade deals. Our friends and enemies have taken advantage of the U.S. for many years. Our Steel and Aluminum industries are dead. Sorry, it’s time for a change!”

This is an example of economic illiteracy.

Trade is not a war. In trade, as in every voluntary exchange, both parties gain since it is a win-win situation. Furthermore, countries or nations do not trade. Individuals and businessmen do.

I believe most of us have a trade deficit with our barbers, but is it bad? Do we really have to do something about it?

Remember what the French economist Frédéric Bastiat said: “When goods do not cross borders, soldiers will”. I prefer the former rather than the latter.