[BfloGuy]

Given CATO's theory that trade deficits are linked to low unemployment, Egypt should have a severe worker shortage by now.

I wish I had a link to that. I can't, off the top of my head, understand the connection between employment and trade balances. I'm tempted to call it a crock, but, of course, will not till I've read more.

[DannyTN]

For the record, I think CATO's theory that trade deficits cause low unemployment is indeed a crock. I think CATO will say anything in support of free trades. Promoting Free trade is the reason they were formed in the first place.

Trade deficits by themselves are not strongly linked to unemployment. There is evidence that countries that run long term trade deficits have higher unemployment.

But to run a trade deficit when your own people are unemployed and you are sinking in debt is non-sensical. It's like being unemployed, racking up the debts and yet still hiring someone to mow your grass.

To have import tariffs lower than the taxes on domestic producers is actually an incentive to drive your companies overseas.

[DannyTN]

For the record, I think CATO's theory that trade deficits cause low unemployment is indeed a crock. I think CATO will say anything in support of free trades. Promoting Free trade is the reason they were formed in the first place.

Trade deficits by themselves are not strongly linked to unemployment. There is evidence that countries that run long term trade deficits have higher unemployment.

But to run a trade deficit when your own people are unemployed and you are sinking in debt is non-sensical. It's like being unemployed, racking up the debts and yet still hiring someone to mow your grass.

To have import tariffs lower than the taxes on domestic producers is actually an incentive to drive your companies overseas.