Mish what would be the pros and cons of a balance trade law. If we import say 1b from a country they would be required to import 1b from us. Any gap would be taxed to achieve balance. I understand we pay tariffs. But Might make it cheaper to produce in us bringing back jobs. and the proceeds could be use for say healthcare: ss national debt. etc.

Comments (1)
No. 1-1

I'm definitely not an expert, but I would think you would need to include ALL financial transactions for this to work - not just for trade goods. Maybe this is already done, but I don't think I've really seen a trade balance calculation done that way.

If you don't include all financial transactions, won't you always have a 'gap' representing the items that you aren't counting?