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Trade Haiku

Summary:
George Shultz and Martin Feldstein, in the Washington PostIf a country consumes more than it produces, it must import more than it exports. That’s not a rip-off; that’s arithmetic. If we manage to negotiate a reduction in the Chinese trade surplus with the United States, we will have an increased trade deficit with some other country. Federal ...

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George Shultz and Martin Feldstein, in the Washington Post
If a country consumes more than it produces, it must import more than it exports. That’s not a rip-off; that’s arithmetic. 
If we manage to negotiate a reduction in the Chinese trade surplus with the United States, we will have an increased trade deficit with some other country. 
Federal deficit spending, a massive and continuing act of dissaving, is the culprit. Control that spending and you will control trade deficits.
That's not an excerpt, it's the whole thing. Someday, I will learn to be this concise.



John H. Cochrane
In real life I'm a Senior Fellow of the Hoover Institution at Stanford. I was formerly a professor at the University of Chicago Booth School of Business. I'm also an adjunct scholar of the Cato Institute. I'm not really grumpy by the way!

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