The trade deficit is peaceful evolution

Misconceptions about Trade Deficits

Tim Taylor goes through the misconceptions of free trade and fails to notice his own successful argument.

 When trade rebalances, it is done with capital inflows.  Capital inflow is a foreigner coming to the US to manage production better than we can.  That is called evolution, it is why trade deficits don't matter.  Why would Tim not simply state the obvious and point out that without evolution we would still be apes.

It is Tim, denying his own arguments, that contribute to the misconception.  Softbank is in town, with $100 billion in investable capital from trade surpluses, and an army of superior west African apes.  The obvious conclusion, evolution still happens, is so hidden by the economist that much of the what they say comes out as fraud, unnecessarily.

I suggest that creationism us alive and well among economists, mainly to please their audiences. But an economist should generally know that evolution is an ongoing process.  If Tim is restricted from the truth, that is a fault of the profession, otherwise he basically gets it right.