"The trade deficit is the capital surplus and don't ever think of having a capital surplus as being a bad thing for our country"

This quote by Arthur Laffer is referring to the financial idea of a trade deficit. A trade deficit happens when a country imports more goods and services than it exports. This leads to a net outflow of cash from the nation. However, Arthur Laffer is suggesting that this is not necessarily a bad thing. He is stating that the trade deficit is in fact a capital surplus, implying that the country is getting more capital than it is sending. This capital can be utilized to buy the country's facilities, companies, and other locations of the economy. For that reason, having a trade deficit can in fact be useful for a nation, as it can cause increased economic growth.