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Robᵉʳᵗ Graham @ErrataRob
, 3 tweets, 1 min read Read on Twitter
That's not how it works.
That's not how it works.
That's not how it works.
That's not how it works.
This is the flat-earth version of economics, though to be fair, most people have so little knowledge of economics that they can't explain why this is stupid.
I have a trade deficit with Amazon.com. I send them money, but they don't send me any money in return. I do get money in return, such as through my employer, which has a "trade deficit" with me. The money comes back around, through the magic power of "Economics".
International trade works the same way. It's not complicated. The $75 billion extra we send Mexico comes back on around through the economy, such as through trade with other countries, or more likely, investment inflows.
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