Are Trade Deficits a Sign of Economic Strength?

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Tags: Value and Exchange, Economic Policy, Macroeconomics, Protectionism and Free Trade

03/22/2025 Robert P. Murphy

Bob responds to recent tweets that believe trade deficits are a sign of economic strength. He also includes an op-ed from Robert Barro and a clip from Milton Friedman, to show that even big gun economists can often speak in misleading ways when it comes to trade deficits.

Bob’s Article on Free Traders Defending Deficits: Mises.org/HAP492a
The FRED Chart Referenced in this Episode: Mises.org/HAP492b
Bob’s 2007 Mises Daily article on Capital Surplus: Mises.org/HAP492c
Bob’s 2007 Mises Daily article Predicting the Recession: Mises.org/HAP492d
The Human Action Podcast Episode on International Trade: Mises.org/HAP492e

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