Friday, June 30, 2017

Trump Goes Total Idiot on the Trade Deficit

President Trump made this comment today during a photo op with South Korean President Moon Jae-in:
The United States has trade deficits with many, many countries, and we cannot allow that to continue ... with South Korea right now, but we cannot allow that to continue. This is really a statement that I make about all trade: For many, many years the United States has suffered through massive trade deficits; that’s why we have $20 trillion in debt.
The trade deficit and government debt have nothing to do with one another.

A trade deficit is the amount by which the value of a country's imports exceeds the value of its exports over a given period.

The government debt is the amount of debt issued by a government generally stated at the current date.



  1. Trump: The drunken loudmouth at the end of the bar. Hayek was right, of course; shit floats. Road to Serfdom, chapter 10.
    P.S. I know he doesn't drink. He enjoys a "natural high" har har.

  2. How does this guy have a B.S. in Economics from the University of Pennsylvania? I have a B.S. in Music and I know more about economics than him.

    1. That's more of an (accurate) indictment of the state of economics instruction at so-called "elite" universities than it is of the man himself. It doesn't matter who goes there, they all learn the same erroneous thinking.

  3. Is it possible that he watched the documentary "IOUSA", and got confused on the trade deficit piece and the federal government debt piece?

  4. Hit this link to learn my view on trade policy and trade deficits.