Tuesday, March 23, 2021

Quote of the day 23rd March 2021

"At least the vaccine row might undermine the ‘exports good, imports bad’ view of trade."

(David Gauke, former cabinet minister, on Twitter yesterday)


Jim said...

There are a few things I never could fathom, one being why deflation is bad, another is the "exports good, imports bad" line.

I always thought exports are the way we pay for our imports.

Chris Whiteside said...

Quite. Exactly the point David Gauke was making and I chose it as quote for the day as I thought it was a good one.

Economists and historians refer to the idea that exports are good and imports bad as "Mercantilism" and it was a dominant idea among what passed for economic thinkers from about the 16th to the 18th centuries.

Adam Smith exploded the idea and Ricardo buried the fragments two centuries ago but unfortunately like John Barrowman's character Captain Jack in "Doctor Who" or the T1000 in "Terminator 2" the pieces keep coming back together.