Part 9/13:
He illustrates this with economic equations, stating explicitly that the trade deficit benefits Americans by allowing for the import of foreign assets and capital, and that it is a natural outcome of Americans’ willingness to spend more than they produce. Attempting to "balance" the trade deficit through tariffs or protectionism, he argues, distorts trade and fails to address the real economic drivers—domestic demand and investment.
He advocates for understanding international trade as exchanges between individuals and enterprises rather than nations, stressing that gains from trade are mutually beneficial and that tariffs tend only to distort these benefits.