These are just a few examples of the problems of academic trade and economic theory confronted with the realities of what actually happens in actual countries.
Another economic theory says that trade will balance as a result of currency adjustments. Supposedly when a country is running a surplus, its currency rate will increase and things made in those countries will cost more, so purchases will shift back to the country that had a deficit. But in the real world, the United State competes with real countries that don't play this way. Our country has an enormous, humongous trade deficit and has run continual trade deficits every single year since the late 1970s when "free markets" and "free trade" ideology came to dominate. This is because we follow an economic theory ideology, and other countries look at reality and adjust. So they win.
Reality trumps economic theories and ideologies -- Every. Single. Time.
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