Why free trade isn’t fair

Posted on October 17, 2011 by

The Market Ticker had an interesting post up today, concerning the treachery of free trade.

NAFTA was passed in 1994.  Our trade imbalance in 1993 was -$70 billion. One year later, it was nearly $100 billion in the hole, or more than 40% worse almost overnight… Incidentally, you cannot run a trade deficit on a durable basis without a borrowing ponzi somewhere else in your economy, as otherwise the capital drain self-corrects the trade balance.