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Free Minds & Free Markets

Worry About Budget Deficits, Not Trade Deficits: New at Reason

Next year's $1 trillion federal government budget deficit will bankrupt us, writes John Stossel. But trade deficits are trivial.

Michael Reynolds/SIPA/NewscomMichael Reynolds/SIPA/Newscom"(If) you don't have steel, you don't have a country!" announced the president recently. But lots of things are essential to America—and international trade is the best way to make sure we have them.

Real problems are imbalances like next year's $1 trillion federal government budget deficit, writes John Stossel. That will bankrupt us. But trade deficits are trivial. You run one with your supermarket. Do you worry because you bought more from them than they buy from you? No. The free market sorts it out.

Political figures shouldn't decide what we're allowed to buy, Stossel argues. If they understood markets, they'd know enough to stay out of the way.

Photo Credit: Michael Reynolds/SIPA/Newscom

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