… is from pages 81-82 of Anne Krueger’s 2020 book, International Trade: What Everyone Needs to Know:
There is no reason why trade between any pair of countries should balance. A doctor has a trade deficit with his grocer, his gas station, and many more, but bilateral surpluses with his patients. It is ridiculous to think of bilateral balancing of payments between people.
DBx: And because all trade is between people – and because the world has more than two countries in which people live, work, and trade internationally – all talk of bilateral “trade deficits” bringing economic harm are the intellectual equivalent of talk about black cats and Fridays the 13th bringing bad luck.
