The long but difficult evolution of human society from the penury of the ancient civilizations to the welfare civilization in the developed countries today, is thought to be evidence that prosperity is a natural consequence of the free allocation of property towards its most valuable opportunities. Ultimately, the social philosophy in the western countries is a philosophy of freedom, on which the entire economic development and human civilization

Trade deficit, along with inflation and unemployment, is usually considered a macroeconomic imbalance. This paper presents an economic perspective on the trade deficit issue, dealing with the benefits and costs of free trade, and the relationship between trade deficit and economic growth. The author argue that the concerns about the trade deficit could not be supported with viable proofs. The supporters of state intervention do not take into consideration the fact that in any free transaction, there are two winners: the seller and the buyer.