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Framing the 'Trade Deficit'
Posted By Don Boudreaux On March 21, 2006 @ 11:52 am In Myths and Fallacies,Trade | Comments Disabled
My friend Jack Wenders , Emeritus Professor of Economics at the University of Idaho, notes this passage in a recent AP report:
The U.S. must borrow more than $2 billion per day from foreigners to finance its huge trade deficits.
Jack’s reaction to this typical way of framing the so-called ‘trade deficit’ is noteworthy:
Maybe a better way of putting this would be to say: "Foreigners must sell the U. S. more than $2 billion per day in goods and services to finance their huge purchases of U.S. assets."
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 Jack Wenders: http://www.webpages.uidaho.edu/~jwenders/
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