Most of my posts and comments are about AI and alignment. Posts I’m most proud of, which also provide a good introduction to my worldview:
Without a trajectory change, the development of AGI is likely to go badly
Steering systems, and a follow up on corrigibility.
I also created Forum Karma, and wrote a longer self-introduction here.
PMs and private feedback are always welcome.
NOTE: I am not Max Harms, author of Crystal Society. I’d prefer for now that my LW postings not be attached to my full name when people Google me for other reasons, but you can PM me here or on Discord (m4xed) if you want to know who I am.
Maybe the recent tariff blowup is actually just a misunderstanding due to bad terminology, and all we need to do is popularize some better terms or definitions. We’re pretty good at that around here, right?
Here’s my proposal: flip the definitions of “trade surplus” and “trade deficit.” This might cause a bit of confusion at first, and a lot of existing textbooks will need updating, but I believe these new definitions capture economic reality more accurately, and will promote clearer thinking and maybe even better policy from certain influential decision-makers, once widely adopted.
New definitions:
Trade surplus: Country A has a bilateral “trade surplus” with Country B if Country A imports more tangible goods (cars, steel, electronics, etc.) from Country B than it exports back. In other words, Country A ends up with more real, physical items. Country B, meanwhile, ends up with more than it started with of something much less important: fiat currency (flimsy paper money) or 1s and 0s in a digital ledger (probably not even on a blockchain!).
If you extrapolate this indefinitely in a vacuum, Country A eventually accumulates all of Country B’s tangible goods, while Country B is left with a big pile of paper. Sounds like a pretty sweet deal for Country A if you ask me.
It’s OK if not everyone follows this explanation or believes it—they can tell it’s the good one because it has “surplus” in the name. Surely everyone wants a surplus.
Trade deficit: Conversely, Country A has a “trade deficit” if it exports more tangible resources than it imports, and thus ends up with less goods on net. In return, it only receives worthless fiat currency from some country trying to hoard actual stuff for their own people. Terrible deal!
Again, if you don’t totally follow, that’s OK, just pay attention to the word “deficit”. Everyone knows that deficits are bad and should be avoided.
Under the new definitions, it becomes clear that merely returning to the previous status quo of a few days ago, where the US only “wins” the trade war by several hundred billion dollars, is insufficient for the truly ambitious statesman. Instead, the US government should aggressively mint more fiat currency in order to purchase foreign goods, magnifying our trade surplus and ensuring that in the long run the United States becomes the owner of all tangible global wealth.
Addressing second order concerns: if we’re worried about a collapse in our ability to manufacture key strategic goods at home during a crisis, we can set aside part of the resulting increased surplus to subsidize domestic production in those areas. Some of the extra goods we’re suddenly importing will probably be pretty useful in getting some new factories of our own off the ground. (But of course we shouldn’t turn around and export any of that domestic production to other countries! That would only deplete our trade surplus.)