Ep. 276 Even Milton Friedman Slipped in His Defense of Trade Deficits
Bob Murphy Show
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The Fallacy of Wise Prudence
In either of those scenarios, we're assuming that trade between the US and Japan is balanced. But notice in that kind of analysis, we have a balanced trade. The trade deficit is zero. And this goes back to Adam Smith, who says, what is wise prudence in the conduct of a single household can scarcely be folly when it comes to a great kingdom or something like that.
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