Proper Trade Accounting

Take it away Mr. Bastiat:

The truth is that we should reverse the principle of the balance of
trade and calculate the national profit from foreign trade in terms of
the excess of imports over exports. This excess, minus expenses,
constitutes the real profit. But this theory, which is the correct one,
leads directly to the principle of free trade. I present this theory to
you, gentlemen, just as I do all the others that have been the subjects
of the preceding chapters. Exaggerate it as much as you wish; it has
nothing to fear from that test. Assume, if it amuses you, that
foreigners flood our shores with all kinds of useful goods, without
asking anything from us; even if our imports are
infinite and our exports nothing, I defy you to prove to me that we should be the poorer for it.

A complete tit.

In

2 responses

  1. dearieme Avatar
    dearieme

    If TB is a loathsome wee twat, and Mandy a loathsome wee tit, what is GB?
    Tim adds: The Gobblin’ King (© Devil’s Kitchen).

  2. Right, let me get this straight. If we spend more dosh on shit that we earn selling shit and we still have to spend yet more dosh on expenses we make a profit?
    I know I only went to a mining school and not some centre of economic excellence, but there’s something niggling me here; I just can’t put my finger on it at the moment.
    RM
    Tim adds: He’s arguing against the mercantilist case. They were saying that a trade deficit is a loss to the country (all that money flowing out). He’s stating that a trade deficit is a profit. See, we’ve got all these good things coming ini!

Leave a Reply

Discover more from Tim Worstall

Subscribe now to keep reading and get access to the full archive.

Continue reading