1/8 Trade deficits: Buffett warns they bleed national wealth. Mosler claims they boost real prosperity. Who’s right? My analysis settles this economic cage fight. 
2/8 Buffett’s view: A trade deficit = "selling the farm." You exchange assets (bonds, land) for imports today. Over time, foreigners own your capital. Squanderville parable shows how complacency leads to colonization-by-purchase.
3/8 Mosler (MMT) counters: Wealth = your "pile of stuff." Imports grow that pile; exports shrink it. Trade deficits = free goods! Just offset money outflow with government deficits. Simple?
4/8 The core clash: Buffett sees long-term asset erosion. Mosler sees short-term consumption gains. One measures wealth by ownership; the other by goods-in-hand.
5/8 My take: Mosler’s static view ignores compounding risk. Yes, imports add to today’s pile. But losing asset control means tomorrow’s pile depends on foreign owners.
6/8 Remember: Trade deficits require capital inflows. Bonds? Fine. But when inflows buy assets (land, firms), profits flee offshore. That’s the Thriftville trap.
7/8 This isn’t theory. The U.S. imports 20% of GDP. Could we quit working? Buffet’s warning: Eventually, you work extra hours to pay rent to your creditors.
8/8 P.S. See my full breakdown of Buffett vs. Mosler, including why MMT’s trade stance is an intellectual fallacy.
Watch now:
#Economics #TradeDeficit #MMT #WarrenBuffett
Watch now:
#Economics #TradeDeficit #MMT #WarrenBuffett
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