President Donald Trump sent out a tweet on Tuesday morning, lamenting on the U.S. trade deficit with Germany and the nation’s inability to pay their fair share of NATO (just disband the whole thing).
Like any other Trump tweet, it was a mix of fallacy and truth. It’s true that Germany should take on a greater responsibility in NATO, but it is incorrect to be upset over the trade deficit.
We have a MASSIVE trade deficit with Germany, plus they pay FAR LESS than they should on NATO & military. Very bad for U.S. This will change
— Donald J. Trump (@realDonaldTrump) May 30, 2017
A trade deficit is not a bad thing – we all have one with our supermarket. Besides, trade deficits have no bearing on taxes – it’s the president’s protectionism that will cost Americans.
Legendary free market economist Murray Rothbard responded to President Trump’s concerns about the trade deficit all the way back in 1989!
Here are Rothbard’s comments in the video embedded below:
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