Something wrong with free market capitalism

[Supposn]

USA has not experienced a trade deficit of goods every year of the past half century?

yes dear but
1) goods and services show no deficit. ...
... Do you understand now??

Edward Baiamonte, USA’s total annual trade balances are the global trade in goods and our service products.

Both our goods and service balances generally move in unison but goods are proportionally a much greater, and services are a much lesser contributors to our total global balances.
Our annual net balances of global trades, and the balances’ segments of both goods and of service products’ traded are ALL entirely negative; (i.e. they’re ALL of net trade deficits.


USA global annual trade in aggregate and that of goods and of service products have and they continue to be annual trade deficits.


Prior to 1976, USA’s better performing service products’ global trades offset our global trade deficits’ of goods and we had proportionally small annual net global trade surpluses of aggregate products.
Every year in the past 39 years, we suffered annual global trade deficits of exceedingly greater proportions and amounts with regard to both goods and service products.


Respectfully, Supposn

 

[EdwardBaiamonte]

USA has not experienced a trade deficit of goods every year of the past half century?

yes dear but
1) goods and services show no deficit. ...
... Do you understand now??

Edward Baiamonte, USA’s total annual trade balances are the global trade in goods and our service products.

Both our goods and service balances generally move in unison but goods are proportionally a much greater, and services are a much lesser contributors to our total global balances.
Our annual net balances of global trades, and the balances’ segments of both goods and of service products’ traded are ALL entirely negative; (i.e. they’re ALL of net trade deficits.


USA global annual trade in aggregate and that of goods and of service products have and they continue to be annual trade deficits.


Prior to 1976, USA’s better performing service products’ global trades offset our global trade deficits’ of goods and we had proportionally small annual net global trade surpluses of aggregate products.
Every year in the past 39 years, we suffered annual global trade deficits of exceedingly greater proportions and amounts with regard to both goods and service products.


Respectfully, Supposn

so what exactly is the cause and what exactly do you want to do about it????

In the late 1990s, when the trade deficit reached record highs, unemployment dropped to its lowest level in three decades.

 

[Supposn]

USA has not experienced a trade deficit of goods every year of the past half century?

QUOTE="EdwardBaiamonte, post: 11870458, member: 34008"]
... so what exactly is the cause (of annual trade deficits and their detrimental affects) and what exactly do you want to do about it????

In the late 1990s, when the trade deficit reached record highs, unemployment dropped to its lowest level in three decades.

Baiamonte, economics, (as all social studies) are aggregate concepts, and philosophies; they are matters fully worthy of studies, but unlike the studies of what themselves are physical things or the physical forces due to the physical activity of physical things. Social studies are not social sciences.


Doctors are very often unable to parse the consequences and the extent of those consequences due to the inter-related physical organs within a complex living organism; but medical studies are sciences. You presume we determine exact entire causes and their extents of all economic factors inter- relationships within complex economic environments? Social studies are not social sciences.


I’m most concerned with the consequences of USA wage’s purchasing powers upon the prices of globally traded products. The differences between the purchasing powers of USA and of foreign wages are major factors driving our annual global trade deficits.

Annual global trade deficits are ALWAYS an immediate detriment to their nation’s jobs which in turn are of some detriment to our median wage.

As we suffered annual trade deficits, (regardless of whatever was then USA’s economic conditions), those conditions were less than otherwise due to those trade deficits. Our annual trade deficits were a drag upon our economy during our entire (i.e. both the better and the lesser) economies of those prior years.


If you’re interested in a fuller explanation of trade deficit’s harm, refer to my next post within this thread.

I’m among the proponents for a unilateral trade policy based upon “Import Certificates”. I’m an advocate of a particular species of the concept described in Wikipedia’s article entitled “Import Certificates”.

The thread Reduce the trade deficit increase GDP median wage - Economics - Page 5 - City-Data Forum
is devoted to discussion of that species of the Import Certificate’s concept.


Respectfully, Supposn

 

[Supposn]

Excerpted from the Wikipedia article entitled “Balance of trade”:

Trade Balances' effects upon their nation’s GDP.

Annual trade surpluses are immediate and direct additions to their nations’ GDPs. To some extent exports induce additional increases to GDP that are not reflected within the export products’ prices; thus contributions to GDP from trade surpluses are generally understated.

Products’ prices generally reflect their producers’ production supporting expenditures. Producers often benefit from some production supporting goods and services at lesser or no cost to the producers.

For example, governments may deliberately locate or increase the capacity of their infrastructure, or provide other additional considerations to retain or attract producers within their own jurisdictions. The curriculum of a nation's schools and colleges may provide job applicants specifically suited to the producer’s needs, or provide specialized research and development. All nationalfactors of production, including education, contribute to GDP, and unless globally traded products fully reflect those goods and services, these other export supporting contributions are not entirely identified and attributed to their nations’ global trade.

Annual trade deficits are immediate and indirect reducers of their nations’ GDPs.

Trade deficits make no net contribution to their nations’ GDPs but the importing nations indirectly deny themselves of the benefits earned by producing nations; (refer to “Annual trade surpluses are immediate and direct additions to their nations’ GDPs”). Among what’s being denied is familiarity with methods, practices, the manipulation of tools, materials and fabrication processes.

The economic differences between domestic and imported goods occur prior to the goods entry within the final purchasers' nations. After domestic goods have reached their producers shipping dock or imported goods have been unloaded on to the importing nation’s cargo vessel or entry port’s dock, similar goods have similar economic attributes.

Although supporting products not reflected within the prices of specific items are all captured within the producing nation’s GDP, those supporting but not reflected within prices of globally traded goods are not attributed to nations' global trade. Trade surpluses' contributions and trade deficits' detriments to their nation's GDPs are understated. The entire benefits of production are earned by the exporting nations and denied to the importing nation.

 

[EdwardBaiamonte]

Excerpted from the Wikipedia article entitled “Balance of trade”:

Trade Balances' effects upon their nation’s GDP.

Annual trade surpluses are immediate and direct additions to their nations’ GDPs. To some extent exports induce additional increases to GDP that are not reflected within the export products’ prices; thus contributions to GDP from trade surpluses are generally understated.

Products’ prices generally reflect their producers’ production supporting expenditures. Producers often benefit from some production supporting goods and services at lesser or no cost to the producers.

For example, governments may deliberately locate or increase the capacity of their infrastructure, or provide other additional considerations to retain or attract producers within their own jurisdictions. The curriculum of a nation's schools and colleges may provide job applicants specifically suited to the producer’s needs, or provide specialized research and development. All nationalfactors of production, including education, contribute to GDP, and unless globally traded products fully reflect those goods and services, these other export supporting contributions are not entirely identified and attributed to their nations’ global trade.

Annual trade deficits are immediate and indirect reducers of their nations’ GDPs.

Trade deficits make no net contribution to their nations’ GDPs but the importing nations indirectly deny themselves of the benefits earned by producing nations; (refer to “Annual trade surpluses are immediate and direct additions to their nations’ GDPs”). Among what’s being denied is familiarity with methods, practices, the manipulation of tools, materials and fabrication processes.

The economic differences between domestic and imported goods occur prior to the goods entry within the final purchasers' nations. After domestic goods have reached their producers shipping dock or imported goods have been unloaded on to the importing nation’s cargo vessel or entry port’s dock, similar goods have similar economic attributes.

Although supporting products not reflected within the prices of specific items are all captured within the producing nation’s GDP, those supporting but not reflected within prices of globally traded goods are not attributed to nations' global trade. Trade surpluses' contributions and trade deficits' detriments to their nation's GDPs are understated. The entire benefits of production are earned by the exporting nations and denied to the importing nation.

so what exactly is the cause and what exactly do you want to do about it????

In the late 1990s, when the trade deficit reached record highs, unemployment dropped to its lowest level in three decades.