this post was submitted on 03 Apr 2025
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Too bad it's based on wrong assumptions. It's not the arithmetic that's the issue, it's the model.
And if they did it on a test, they'd flunk it.
Yeah, it fails to understand the rationale for comparative advantage (there's a reason Ecuador exports more bananas than Norway does), and it also fails to consider the balance-of-payments effect of things like foreign direct investment (which looks zero-sum when it first takes place but means the profits are outflows from that point on, unless the foreign investors choose to reinvest them).
Also I don't think the idiots who came up with that table know the difference between a current account balance and balance of trade.