Page "Balance of trade" Paragraph 32

By reductio ad absurdum, Bastiat argued that the national trade deficit was an indicator of a successful economy, rather than a failing one.

Bastiat predicted that a successful, growing economy would result in greater trade deficits, and an unsuccessful, shrinking economy would result in lower trade deficits.

This was later, in the 20th century, affirmed by economist Milton Friedman.