The Twin Deficits

Tags: Protectionism and Free Trade, U.S. Economy

04/12/2025 Mark Thornton

You’ve heard endless debate about the trade deficit, but what about its evil twin, the budget deficit? In this episode, Mark Thornton untangles the truth behind the so-called “twin deficits,” revealing why trade imbalances aren’t necessarily bad, and how government borrowing distorts investment, fuels inflation, and weakens long-term prosperity. Mark cuts through the economic fog and shows what’s really dragging us down.

Additional Resources

“Trade Deficits and Fiat Currencies” by Robert Murphy: mises.org/MI_115_A

“The Evil Twins: U.S. Federal Budget Deficits and U.S. Trade” by Jane L. Johnson: mises.org/MI_115_B

“The Twin Deficits” by Gary North: mises.org/MI_115_C

“A Dollar as Good as Gold” by Lewis E. Lehrman: mises.org/MI_115_D

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