Writing in the late 1970s, Milt Friedman made an interesting point in that, the less a country needs to export, the better value it is getting for its imports. Some problems: 1. The whole country benefits, in theory. In reality, it is not the country, but businesses doing the importing and exporting. If export businesses are not doing enough exporting, they close. With too few exports, sustained imports would require taking on lots of debt. Ironically, his approach would work if the whole of the countrys business belonged to the government. 2. Like much of his economic system, Friedman does not take finite resources into account. All this importing and exporting is great, but it takes resources to move things. His system relies on cheap fuel, and that commodity is rapidly running out.
Posted on: Thu, 17 Jul 2014 15:34:02 +0000
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