Reduce the trade deficit; increase GDP & median wage.

[Supposn]

Reduce the trade deficit; increase GDP & median wage

It is not our global trade but our trade deficits’ that are a significant net detriment to our economy. Annual trade deficits’ are ALWAYS an immediate detriment to their nations’ GDPs.

I’m a proponent of a proposal to reduce USA’s trade deficit of goods that was first introduced to the Senate in 2006.
The basic concept is exporters of USA goods may choose to have their goods assessed and to pay the federal assessment fees in order to acquire transferable Import Certificates; (ICs) which are issued only to exporters of USA goods for face amounts equivalent to the assessed valuation of their goods.
The fees are to defray the direct federal expenditures due to this trade policy; they are not a net federal revenue source. The exporters’ are motivated by transferable IC’s value upon the open global market.
Importers of goods are required to surrender ICs with face values to cover the assessed values of the goods they want to bring into the USA.
Scarce and precious minerals are specifically listed. The value of such minerals integral to goods are excluded from all goods assessed values.
The purpose of this proposed trade policy is to eliminate USA’s annual trade deficit of all assessed goods and significantly reduce or entirely eliminate USA’s trade deficit. Additionally this policy’s an indirect but effective subsidy of USA exported goods. All of this would increase USA’s GDP, numbers of jobs and median wage more than otherwise.

[Annual trade deficits are indirectly ALWAYS immediately detrimental to their nation’s GDP which in turn similarly affect numbers of jobs and median wage; annual trade surpluses have a direct and opposite (to deficits’) effect upon their nations’ economy]
This policy would be of advantage to any USA enterprise that competes or aspires to compete with foreign goods within or beyond USA’s borders. If we consider exporting and importing as a single global trade industry, then this proposal would then not be detrimental to any USA industry.
Wage and salary earning families benefit from cheaper imported goods but that doesn’t compensate for trade deficits’ detriment to the GDP, numbers of jobs and median wage.

Google “ wikipedia, import certificates “ .

For further reference google “ wikipedia, balance of trade “ then refer to the paragraphs entitled “Trade balances’ affects upon their nation’s GDP”

espectfully, Supposn

 

[Mr. H.]

We're already doing just that. The crude oil and natural gas industries are essentially propping up the economy, adding to GDP, reducing trade deficit, and employing increasingly growing numbers of workers.

 

[expat_panama]

...trade deficits’ are ALWAYS an immediate detriment to their nations’ GDPs.

A lot of people say that, even though in real life the GDP increases only when the so-called 'trade deficit' grows.

So what we're really looking at is the party line colliding with reality.

 

[Supposn]

...trade deficits’ are ALWAYS an immediate detriment to their nations’ GDPs.

A lot of people say that, even though in real life the GDP increases only when the so-called 'trade deficit' grows.

So what we're really looking at is the party line colliding with reality.

ExPat_Panama, you’re confusing what’s cause and what’s effect.

Generally there’s no one single factor that is THE one single determinator of a nation’s aggregate economy.
It has never been contended that our nation’s balance of trade is such a single factor. (other than extraordinary economic times such as all out war conditions), the consequences of a nation’s trade deficit is to reduce the numbers of jobs and the purchasing powers of the median wage (more than otherwise).

USA’s domestic markets sell greater volumes of goods during more robust economic periods and less when our economy is in a decline. Imported and domestic goods differ and there is no particular proportional relationship between their sales volumes within their nations' domestic markets; But their sales’ volumes generally both increase or decrease during the same periods.

[I.E. trade deficits do not determine the nation’s economic condition but due to a trade deficit that nation’s economic condition will be poorer than otherwise; (otherwise being no trade deficit)].

Respectfully, Supposn