A short quote from Rothbard… Myth 4: A major cause of the crash was the big trade deficit in the U.S. Nonsense. There is nothing wrong with a trade deficit. In fact, there is no payment deficit at all. If U.S. imports are greater than exports, they must be paid for somehow, and the way they are p…

Your excerpt is part of a commentary on the 1987 stock market crash, not Austrian economist Peter Schiff specifically. However, it is relevant because he and Peter Schiff seem to differ on the significance of trade deficits. Rothbard claims foreign investment in dollars is good because it raises U.…

Is it Schiff’s stance that the crash was caused partially by the trade deficit? I think his position is that it is responsible for U.S. job destruction, not necessarily a contributing factor in the crash, but instead that it is slowing down the recovery. And not even in a direct way, but as a result…

I know. The hope was that the reader would catch on. Rothbard passed away long before Peter Schiff became popular.

This has nothing to do with Schiff. He doesn’t say the trade deficit was a cause for the crash.

resist, Almost everything you say is spot on. But for one little thing. The deficit is not responsible for job destruction, but vice versa.

I think the point is that Rothbard said “There is nothing wrong with a trade deficit.” but that Schiff disagrees. Schiff says the deficit is not sustainable and that it contributes to the “phony economy.”

That is not a disagreement. Those are two different things.

That’s Schiff’s problem with the current trade deficit with China and he wants it to end ASAP. So he does think trade deficits can be bad. Not that they are uniformly bad.

Your excerpt is part of a commentary on the 1987 stock market crash, not Austrian economist Peter Schiff specifically. However, it is relevant because he and Peter Schiff seem to differ on the significance of trade deficits. Schiff is not an Austrian. Even if he appears to disagree with Rothbard …

Rothbard on Schiff

Economics Economics Questions

Smiling_Dave January 13, 2011, 6:46pm 15

Welcome, John James. Way to go.

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Rothbard on Schiff

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