Over the years, I — like all defenders of free trade — have had countless conversations with protectionists who are tenacious in searching for weaknesses in the case for free […]
The Great Depression formally began in August 1929, two months before Black Tuesday. Initially, the economic downturn that began late that Summer gave no signs that it was the start […]
No notion in economics is responsible for more misunderstanding and misguided government policies than that of the “balance of trade” (or “balance of payments”). Rightly ridiculed in 1776 by Adam […]
What do the following three dates have in common with each other? 1975. January 1, 1994. December 11, 2001. Think for a moment. Give up? Each of those three dates […]
As noted in my previous column, foreign holdings of US dollars are classified as foreign holdings of US assets and, thus, contribute to US trade deficits. But as I argued, […]
Donald Trump believes that US trade deficits are evidence that Americans are being “ripped off” by foreign countries. He’s not alone. Fear and loathing of US trade deficits are bipartisan […]
Economics textbooks feature a coherent theory of how markets can allocate scarce resources in ways that achieve what is plausibly described as maximum possible human satisfaction.
Consider the fictional little country of Dynamia. Although, strictly speaking, this place is a product of my imagination, my imagination here sticks closely to essential facts of reality. Dynamia is […]
A familiar excuse for protective tariffs and other trade restrictions goes like this: It would be all well and good for our government to follow a policy of free trade […]
Early on in my introductory economics course I warn my students always to beware of various logical fallacies, none of which is more prone to sow confusion than the fallacy […]