A Basic Lesson in Economics:
“Trade deficits,
you see, do not just disappear and tax revenues soar because you block imports.
When the trade deficit goes down, capital inflows from abroad go down with it.
And since foreign capital fills the gap between savings and investment at home,
savings must rise or investment must fall. This is a basic principle of
national income accounting, which all students learn in introductory
macroeconomics classes.”