Trade deficit is detrimental to GDP & median wage

Discussion in 'Economy' started by Supposn, Feb 21, 2010.

  1. Supposn
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    Supposn Senior Member

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    Trade deficit is detrimental to the GDP & median wage2
    Copy of 1st message within www.USA-Trade-Deficit.Blogspot.Com :

    *** A nation’s trade deficit is always a net economic detriment.

    When local producers have perceptively modified their volumes of productions, there is often obvious resonating production modifications within the community. Producers of completely unrelated products and services can be affected, (i.e. factory production affecting beauty parlors revenues). Modification of a community's gross production affects local employment and wage rates. This same phenomenon occurs when the initial catalytic producers were small but acting in concert. (That's often the case within single or allied industries). On a national scale this is all generally dispersed and thus less obvious but no less real.

    For over a half century USA's continuously increasing annual trade deficits have been such a significant catalyst. Our annual GDP and median wage has been less than otherwise due to our pursuit of pure unrestricted free trade (among nations that are unwilling and/or unable to sufficiently compensate their laborers).

    Trade deficit's detriment to the GDP exceeds the amount of the deficit itself. Anything detrimental to the GDP is also generally detrimental to the median wage. Our trade deficit's net detriment to USA's economy is greatly under-estimated by those influential within and outside of our government; (because its affect upon the median wage is proportionately a greater burden to lower income families)?

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    See next message of this USMessageBoard thread for an explanation of Warren Buffett’s concept to significantly reduce USA’s trade deficit of goods.

    Respectfully, Supposn
     
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    Supposn Senior Member

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    Copy of 2nd message within www.USA-Trade-Deficit.Blogspot.Com :

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    *** Warren Buffett’s concept to significantly decrease USA’s global trade deficit of goods.

    Warren Buffett's proposal to significantly decrease USA's trade deficits appeared within the November 2003 issue of Fortune magazine. Senators Dorgan and Feingold submitted a trade proposal in 2006 that was based upon Buffett’s concept. Exporters would be issued transferable IMPORT Certificates for that assessed value of their goods leaving the USA. Importers would be required to surrender IMPORT Certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled.

    The 2006 draft did not reach a senate floor vote. Many of us regret the draft was not self-funding. We prefer that goods leaving the USA be assessed and certificates issued only for exporter that choose to pay fees covering all government expenses due to this trade act. The open market value of transferable import certificates would sufficiently motivate exporters.
    (Refer to
    www.govtrack.us/congress/billtext.xpd?bill=s109-3899).

    We also regret that assessments would not be adjusted to exclude the value of specifically listed scarce or precious minerals integral to the goods being assessed. We should discourage the export of cast gold paper weights encrusted with gems in order to facilitate importing high-tech or labor intensive goods. [This should be a deal buster. The absence of such an exclusion would undermine, (if not completely evade) the act’s purpose]. The 2006 draft did completely exclude assessment of gas and petroleum products within the five years duration after the act’s initial enactment.

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