He was self-taught and in 1883, as external candidate he graduated from gymnasium in Jelgava.

Between 1884 and 1887 Kārlis studied theology at the University of Tartu. In 1888, he was sent to Brazil to work as a Lutheran minister. In 1891 and 1892, he studied geography at the University of Jena. Between 1893 and 1895, he worked as a minister in the Ural Mountains region, and wrote his first researches on demography and statistics. In 1895, he started studying economics at the University of Munich.

He studied theology in Dorpat (1884-1887), in 1888 he was ordained a Lutheran pastor and went to Brazil, where in 1889-1891 he unsuccessfully tried to establish a Latvian colony. In 1891-1892, he studied geography at the University of Jena in Germany and defended his doctoral thesis. In 1893-1895, he served as Lutheran pastor in the Urals and wrote studies on demography and statistics. In 1895, he moved to Germany again, studied economics at the universities of Munich and Strasbourg.

Balodis was also known as Ballod-Atlanticus after he adopted the name Atlanticus from Francis Bacon’s book Nova Atlantis (1627). Under this name he published the utopian book Ein Blick in Der Zukunftsstaat: Produktion und Konsum im Sozialstaat (A Look at the Future State: Production and Consumption in the Socialist State). The first edition, which ran to 3,000 copies, was published in 1898 with a preface by Karl Kautsky. A second edition which ran to 12,000 copies was issued in 1919, with a third edition of 5,000 appearing in 1920 and a final edition appearing in 1927 with the slightly different title of 1927 as Der Zukunftsstaat: Wirtschaftstechnisches Ideal und Volkswirtschaftliche Wirklichkeit (The Future State: Economic Ideal and Economic Reality). Several Russian editions were produced between 1903-6, one of which was authorised by Balodis. The second edition was also published in Russia but without the author’s permission.

After 1899, Balodis worked as an associate professor at the University of Berlin. In 1905, he became an employee of Prussian Statistics Office, and in 1908, he started work at the German Federal Ministry of Finance. In 1918 he became the first chairman of the Pro Palestinian Committee. In 1919, he worked on the civilian rationing system.

After the war Balodis returned to Latvia. He was a member of the Latvian Workers Association. where he became a professor at the University of Latvia. In 1928, he became a member of the Parliament of Latvia.