Is free trade among countries the same as among individuals?

Discussion in 'Economy' started by EdwardBaiamonte, Mar 21, 2018.

  1. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    Conservatives and libertarians support free trade between individuals and between countries in the belief that Republican capitalism works best in both cases. isn’t it amazing how despite liberals best efforts they really can’t hide from us the real And constant issue of political economy ie, capitalism versus socialism.
     
  2. Supposn
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    Supposn VIP Member

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    EdwardBaiamonte, I responded to James972 within another group. His thread's title is EXACTLY as yours which was posted 3 minutes later. Do you also post over the pen-name James972?

    James972, you're incorrect; the consequences of free trade among nations is not similar to consequences of free trade among self determined entities if the nations' governments were not among the principals that actually determined the individual trade or sales agreements.

    Enterprises choose to internationally outsource when they believed it's to their net advantage; (i.e. they perceived a comparative advantage to do so).

    Enterprises discontinuing production of any item may benefit by numerous methods. They could shift their displaced labor to perform other tasks that need to be done, or dismiss higher priced and/or specialized labor to perform those other tasks, or simply dismiss their now excess labor with no additional hiring. Their choice of action will be dependent upon circumstances and in aggregate, those choices will be to the enterprise's net benefit.

    Enterprises can directly benefit from purchasing imported goods but they do not pay for their decisions net detrimental effects upon USA's economy. Annual trade deficits are always net detrimental to their nations GDP and drag upon their numbers of jobs.

    We should not blame enterprises or persons for acting in what they (usually correctly) believe to be to their own individual best interests. USA's chronic annual trade deficits are a condition that we can recognize and remedy. If USA adopted the trade policy described within Wikipedia's “Import Certificates” article, it would significantly, (if not entirely) eliminate our annual trade deficits of goods, increasing our GDP and numbers of jobs more than otherwise.

    Within an Import Certificate policy, what individual enterprises (correctly) perceive to be in their own best interests will also be to our nation's best interests.

    Respectfully, Supposn
     
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  3. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    you'd buy a banana from a tropical county because it is cheaper than one grown local in a greenhouse. An intelligent country would not prevent you from buying from a tropical country tropical and rejecting local bananas if grown by individuals unless they wanted to reduce you standard of living. Get it now? We must be allowed to buy from those who have a comparative advantage.
     
  4. Supposn
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    Supposn VIP Member

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    EdwardBaiamonte, aka James972, annual trade deficits are always nation's GDP and thus drag upon their numbers of jobs.

    Annual trade deficits, the aggregate net consequences of a nation's entire enterprises' global transactions reduce their nation's GDP and thus rather (as you contend increasing), they're actually reducing their nation's aggregate standard of living.

    The concept of recognizing and prohibiting classifications of actions and transactions that are deemed to be net detrimental to our society is established in USA's laws and justifys the proposed Import Certificate trade policy. You understand but you do not approve of this response to your post; you do get it.

    Refer to Wikipedia's “Import Certificates”, and Encyclopedia Britannica's “GDP” articles.
    Respectfully, Supposn
     
  5. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    EdwardBaiamonte, aka James972, annual trade deficits are always nation's GDP and thus drag upon their numbers of jobs.

    Exactly! We must grow our own bananas.
    Because the jobs created to grow bananas, even if they would cost $5 each,
    more than make up for the reduction in our standard of living that would result.
     
  6. TheOldSchool
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    Trump’s doing a pretty good job of doing just that to you rubes
     
  7. TheOldSchool
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    More expensive bananas means less demand for bananas, which results in less production of bananas. Congratulations, you’ve destroyed wealth.
     
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  8. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Well, the only important thing is that by reducing the trade deficit, you've increased GDP.
    Just ask Supposn, he'll tell you.
     
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    Lessening profit and production does not increase the GDP
     
  10. Toddsterpatriot
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    Profit.....living standards.....pffft.......it's all about the formula for GDP.

    A trade deficit subtracts from GDP. If we produce 1000 bananas and they cost $1000 each, that's
    an increase in GDP of $1,000,000. Combined with the reduction of banana imports to zero, our GDP will soar!
     

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