- Mar 15, 2020
- Reaction score
Thanks for your comment. At first I didn’t understand, but your link and the Warren Buffet letter really clarified. I think Buffet’s suggestion and the old bill introduced into Congress were ideas whose time, unfortunately, has passed. Technically interesting, but today the problem is so much deeper I doubt there is a technical solution possible. As always there is simply no will to confront the problem....Tom Paine 1949, I’m among the proponents of the improved foreign trade policy described in Wikipedia’s “Import certificates” article; refer to Import certificates - Wikipedia .
The unilateral and substantially market (rather than government) driven proposal would significantly reduce, if not eliminate USA’s chronic annual trade deficits of goods while increasing our annual GDP’s more than otherwise.
For any given extent of a nation’s aggregate purchases, trade deficit nations reduced, and trade surplus nations increased their annual GDP’s more than otherwise; otherwise being if the polarity of their trade balance had been otherwise.
Annual trade deficits indicate that their nation’s annual purchases exceed the value of their entire production; they spent more than they earned. Annual trade deficits are particularly detrimental to their nation’s total numbers of jobs and the purchasing power of employees' median wage.
Nation’s annual trade deficits, similar to lighting cigars with hundred-dollar bills, are practices more easily sustained by those more wealthy.
But annual trade deficits are detrimental to their nations’ economies and to using $100-bills as torches are detriment to the payers' aggregate wealth.