Sunday, July 15, 2018

A Plea to Economics Journalists

The world's greatest Keynesian economic textbook salesman, Greg Mankiw, makes a reasonable request:
I was recently reading an article by Greg Ip (one of best economics journalists around, by the way), and he used the following expression:
"the trade balance improved"
A quick google search finds this expression (and the related "the trade balance deteriorated") used many thousands of times by various writers. 

I would like to ask everyone to please stop saying things like this. Write instead:

"the trade balance moved toward surplus"
I know that is wordier, but saying "the trade balance improved" lends credibility to the view that trade surpluses are always good and trade deficits are always bad. That is not true, of course, and I doubt Mr. Ip intended that interpretation. But in light of all the craziness going on lately with regard to trade policy, it is best not to inadvertently give aid and comfort to the crazies.

-RW