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Mankiw on Navarro – a Teachable Moment?

I’m not known to praise Greg Mankiw often but this post on the Navarro nonsense was worth the read: Their analysis of trade deficits, starting on page 18, boils down to the following: We know that GDP=C+I+G+NX. NX is negative (the trade deficit). Therefore, if we somehow renegotiate trade deals and make NX rise to zero, GDP goes up! They calculate this will bring in $1.74 trillion in tax revenue over a decade.
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