USA goods could be competitively priced

[EdwardBaiamonte]

The GDP is an index that is valid only for the manufacturing sector.

more pretending you took Econ 101 and being laughed at by those who did? GDP is a measure of goods and services. As consumers we want both goods and services equally and want to consume more and more of both all the time.

No, because for example for England, that gross domestic production is made almost entirely by the City of London banking deals. So that is not a descriptor, unless you pick a country that is mostly manufacturing, such as China.

USA is more services oriented than England. So? Does that make our GDP low. Our people poor? Do you care if you earn 100k paycheck in goods or services. Do you have a higher standard of living because you earned it in goods rather than services?

 

[EdwardBaiamonte]

Every country plays this game.

there is no game to play. they can drop their price to break even and so can every country. This is the way competition has always worked .

 

[Toddsterpatriot]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?

no no Bangladesh China Vietnam are very poor countries meaning their workers earn a tiny amount and can afford to buy a tiny amount compared to Americans.
Because they earn a tiny amount they produce goods cheaply. Exchange rates have little or nothing to do with it.

If a Bangladesh guy and a USA guy sell the same thing internationally, and Bangladesh drops its currency exchange by a factor of 10, then the USA guy must work 10 times harder to survive. Then, if Bangladesh drops it by a 1000 ... You see what I mean?

If a Bangladesh guy and a USA guy sell the same thing internationally, and Bangladesh drops its currency exchange by a factor of 10, then the USA guy must work 10 times harder to survive.

So they'll pay 10 times as much to import their raw materials. How is that helpful?

But it is the cost of labor that is dominant, so the raw materials is only a tiny percentage.

Depends on the product.

 

[Supposn]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?
The USA trade deficit may be a problem, but why does the GDP matter? The GDP is an index that is valid only for the manufacturing sector. Only third world countries have dominant manufacturing sectors, it is negligibly small in the USA.

AnotherLife, you didn't read or you didn't understand the “import Certificates” article within Wikipedia?

Regardless of whatever is the U.S. dollar's exchange rate within global currency markets, if we adopt the Import Certificate policy, USA cannot have an annual trade deficit of goods.

It's not just applicable to manufactured goods.
The values of whatever the U.S. Congress determines to be scarce or precious mineral materials, (such as diamonds and other gem stones, precious metals, crude oil petroleum) are not subject to this trade policy. Their estimated value integral to the goods within global shipments, reduces the assessed valuations of those shipments.

Other than those mineral materials, the Import Certificate policy is applicable to ALL goods; it's applicable to agricultural, ranching, fishing, lumber, computers, automotive goods.

We benefit from cheaper imported goods but to the extent that our chronic annual trade deficits reduce our GDP and our numbers of jobs, cheaper imported goods do not fully compensate wage earning families for trade deficits detrimental effects upon our numbers of jobs and our median wage.

Respectfully, Supposn

 

[Toddsterpatriot]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?
The USA trade deficit may be a problem, but why does the GDP matter? The GDP is an index that is valid only for the manufacturing sector. Only third world countries have dominant manufacturing sectors, it is negligibly small in the USA.

AnotherLife, you didn't read or you didn't understand the “import Certificates” article within Wikipedia?

Regardless of whatever is the U.S. dollar's exchange rate within global currency markets, if we adopt the Import Certificate policy, USA cannot have an annual trade deficit of goods.

It's not just applicable to manufactured goods.
The values of whatever the U.S. Congress determines to be scarce or precious mineral materials, (such as diamonds and other gem stones, precious metals, crude oil petroleum) are not subject to this trade policy. Their estimated value integral to the goods within global shipments, reduces the assessed valuations of those shipments.

Other than those mineral materials, the Import Certificate policy is applicable to ALL goods; it's applicable to agricultural, ranching, fishing, lumber, computers, automotive goods.

We benefit from cheaper imported goods but to the extent that our chronic annual trade deficits reduce our GDP and our numbers of jobs, cheaper imported goods do not fully compensate wage earning families for trade deficits detrimental effects upon our numbers of jobs and our median wage.

Respectfully, Supposn

We benefit from cheaper imported goods but to the extent that our chronic annual trade deficits reduce our GDP and our numbers of jobs, cheaper imported goods do not fully compensate wage earning families for trade deficits detrimental effects upon our numbers of jobs and our median wage.

Yeah, who cares if it reduces our standard of living, at least we've shrunk an arbitrary bookkeeping entry.

 

[Supposn]

USA is more services oriented than England. So? Does that make our GDP low. Our people poor? Do you care if you earn 100k paycheck in goods or services. Do you have a higher standard of living because you earned it in goods rather than services?

EdwardBaiamonte, if we produce more agricultural, fishery, ranching, and manufactured goods, wouldn't we also have to employ more office staff, painters, carpenters, electricians, janitors, accountants, lawyers, fast food workers, road builders? If you do less, you use less, and you earn less.

1. The benefits of GDP are earned by those who produce the goods and services.
2. 
   Much of the infrastructure that supports the production of goods, also supports the production of service products. Is it your vision that the USA be less rather than more productive, or we should not be concerned for production of goods because you consider service products as more favorable to our economy?
   You're contending production of goods are greater proportions of Germany's or Great Britain's GDPs, and a lesser proportion of USA's GDP? An interesting concept; I never thought of it in that manner.
   But you're also contending that's somehow detrimental to their economies? How so?
3. 
   Respectfully, Supposn

 

[task0778]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?
The USA trade deficit may be a problem, but why does the GDP matter? The GDP is an index that is valid only for the manufacturing sector. Only third world countries have dominant manufacturing sectors, it is negligibly small in the USA.

AnotherLife, you didn't read or you didn't understand the “import Certificates” article within Wikipedia?

Regardless of whatever is the U.S. dollar's exchange rate within global currency markets, if we adopt the Import Certificate policy, USA cannot have an annual trade deficit of goods.

It's not just applicable to manufactured goods.
The values of whatever the U.S. Congress determines to be scarce or precious mineral materials, (such as diamonds and other gem stones, precious metals, crude oil petroleum) are not subject to this trade policy. Their estimated value integral to the goods within global shipments, reduces the assessed valuations of those shipments.

Other than those mineral materials, the Import Certificate policy is applicable to ALL goods; it's applicable to agricultural, ranching, fishing, lumber, computers, automotive goods.

We benefit from cheaper imported goods but to the extent that our chronic annual trade deficits reduce our GDP and our numbers of jobs, cheaper imported goods do not fully compensate wage earning families for trade deficits detrimental effects upon our numbers of jobs and our median wage.

Respectfully, Supposn

I'll be flat out honest with you, if I have to buy foreign products over higher priced domestic stuff to make ends meet to feed, clothe, and pay the bills for my family, I'm damn well going to do it. Any concern for our chronic annual trade deficits comes in a very distant last place. And these days there are quite a few people in that situation.

 

[Supposn]

I'll be flat out honest with you, if I have to buy foreign products over higher priced domestic stuff to make ends meet to feed, clothe, and pay the bills for my family, I'm damn well going to do it. Any concern for our chronic annual trade deficits comes in a very distant last place. And these days there are quite a few people in that situation.

Task0778, refer to my initial post within this thread. I wouldn't urge you or any person or enterprise behave contrary to their best interests.
Unfortunately, annual trade deficits are contrary to their nation's best economic interests.
If USA adopted the Import Certificate policy, what's to individual purchasers' best interests would coincide with the best interests of our nation.
Respectfully, Supposn

 

[Supposn]

Yeah, who cares if it reduces our standard of living, at least we've shrunk an arbitrary bookkeeping entry.

Toddsterpatriot, we'll agree that little can be proved or disproved by speculating “what if”.
If we had full employment than we could doubt to what great extent would employment be increased if we produced more goods.
But if we didn't have full employment and our resources weren't employed to their maximum extents, it's reasonable to ask why you believe that a substantially market driven policy to produce more goods, would have reduced our standards of living?
Lesser GDP and numbers of jobs are “arbitrary bookkeeping entries”?
Respectfully, Supposn

 

[Toddsterpatriot]

Yeah, who cares if it reduces our standard of living, at least we've shrunk an arbitrary bookkeeping entry.

Toddsterpatriot, we'll agree that little can be proved or disproved by speculating “what if”.
If we had full employment than we could doubt to what great extent would employment be increased if we produced more goods.
But if we didn't have full employment and our resources weren't employed to their maximum extents, it's reasonable to ask why you believe that a substantially market driven policy to produce more goods, would have reduced our standards of living?
Lesser GDP and numbers of jobs are “arbitrary bookkeeping entries”?
Respectfully, Supposn

But if we didn't have full employment and our resources weren't employed to their maximum extents, it's reasonable to ask why you believe that a substantially market driven policy to produce more goods, would have reduced our standards of living?

Adding obstacles to people freely buying cheaper goods reduces our standard of living.

Lesser GDP and numbers of jobs are “arbitrary bookkeeping entries”?

Trade deficit is an arbitrary bookkeeping entry.

 

[Picaro]

Or we could reduce taxes and regulations to make our domestic production more competitive.

If tax cuts resulted in more domestic investments as constantly claimed, then we should be able to see this reflected in data from all the tax cuts since Nixon. There aren't any, just Wall Street and real estate bubbles. The claim is just nonsense. And, goods made in Mexico or China are pretty much 'American made'; Ford or WalMart shipping itself stuff it makes in their overseas factories to the U.S. is not 'foreign trade', it's just transfer pricing. Also, some 30% of the domestic GDP is off-shored via transfer pricing as well.

 

[anotherlife]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?
The USA trade deficit may be a problem, but why does the GDP matter? The GDP is an index that is valid only for the manufacturing sector. Only third world countries have dominant manufacturing sectors, it is negligibly small in the USA.

AnotherLife, you didn't read or you didn't understand the “import Certificates” article within Wikipedia?

Regardless of whatever is the U.S. dollar's exchange rate within global currency markets, if we adopt the Import Certificate policy, USA cannot have an annual trade deficit of goods.

It's not just applicable to manufactured goods.
The values of whatever the U.S. Congress determines to be scarce or precious mineral materials, (such as diamonds and other gem stones, precious metals, crude oil petroleum) are not subject to this trade policy. Their estimated value integral to the goods within global shipments, reduces the assessed valuations of those shipments.

Other than those mineral materials, the Import Certificate policy is applicable to ALL goods; it's applicable to agricultural, ranching, fishing, lumber, computers, automotive goods.

We benefit from cheaper imported goods but to the extent that our chronic annual trade deficits reduce our GDP and our numbers of jobs, cheaper imported goods do not fully compensate wage earning families for trade deficits detrimental effects upon our numbers of jobs and our median wage.

Respectfully, Supposn

Looks like this can work only by separating American internal consumption from the rest of the world, and dedicating the entire USA economy to internal consumption. I think China is doing something similar to this, but China can import. The USA will not be able to import under such condition, although the dollar would fall sharply and would lose its reference status, so your proposal may self correct.

 

[anotherlife]

The GDP is an index that is valid only for the manufacturing sector.

more pretending you took Econ 101 and being laughed at by those who did? GDP is a measure of goods and services. As consumers we want both goods and services equally and want to consume more and more of both all the time.

No, because for example for England, that gross domestic production is made almost entirely by the City of London banking deals. So that is not a descriptor, unless you pick a country that is mostly manufacturing, such as China.

USA is more services oriented than England. So? Does that make our GDP low. Our people poor? Do you care if you earn 100k paycheck in goods or services. Do you have a higher standard of living because you earned it in goods rather than services?

Whether it is goods or services it doesn't matter that much. The number of employable citizens that get locked out of the economy is sharply increasing. A country's GDP can be very high, but earned by a single banking trust alone. So the GDP is an empty index. This would be an extreme case, but the USA is not far from it and closing rapidly.

 

[anotherlife]

Every country plays this game.

there is no game to play. they can drop their price to break even and so can every country. This is the way competition has always worked .

A competition, that the dollar valuation has lost for America.

 

[EdwardBaiamonte]

A competition, that the dollar valuation has lost for America.

We lost when per capita income is $55,000 while in Bangladesh it is $1100. Do you think you're fooling anybody but yourself?

 

[EdwardBaiamonte]

The number of employable citizens that get locked out of the economy is sharply increasing.

it is measured by U6 and it does not show that at all !!! during recession u6 unemployment was 18% now its 8%. This is what we call sharply decreasing, not sharply increasing. Do you understand?

 

[EdwardBaiamonte]

. So the GDP is an empty index. This would be an extreme case, but the USA is not far from it and closing rapidly.

We have 130 million smart phone super computers in America so GDP is very widely spread.

You don't need to be an economist to see how rich the middle class got by looking at all the new inventions they could suddenly afford in the last 10 years: suddenly we had plasma TV's, LCD TV's, DLP-TV's, iPods, iphones, CD's and CD players, DVDs and DVD players, Blue Ray and Blue Ray players, PCs, desk top PCs, DVRs, color printers, satellite radio, Advantium ovens, HD-TV, Playstations, X-Boxes, X-box live, X-box Konnect, broadband, satellite TV, cell/camera/video phones, digital cameras, OnStar, palm corders, Blackberries, smart phones, home theaters, SUVs, big houses, more houses per capita, TiVo, 3D movies and TV's, built in wine coolers, granite counter tops, $200 sneakers, Go Pro Cameras, GPS navigation, consumer drones, color matched front loader washing machines, internet Facebook, Pandora, LTE-U, run flat tires, matching washer dryer combinations, McMansions, 4K TV, Iphone 6+, burner commercial ranges, Sub Zero refridgerators, Tesla cars, private space flight, more cars than drivers, a $1 billion ring tone industry, a pet industry that just doubled to $34 billion, 10's of millions lining up to buy Apple's I-tablet, Wii, Fit bits, Apple watches, Netflix boxes, jet skis, induction cooking, low profile tires, aluminum/titanium rims, Harley Davidson and Japanese motorcycles. $700 Billion spent Christmas 2010, $10.5 billion movies 2010, 10 million ocean crusies, 44 million taking plane flights over 2012 holiday, $500 billion spent on Christmas 2012, hover boards, Ti Vi Bolt, Tesla cars, cloud storage, 4k Oled TV,
hover boards, Ring Doorbells, semi self-driving cars, Amazon Alexa,


The list goes on and on. I hope that helps you realize you can't just parrot the communist press and expect to make sense? They have other objectives and are merely using you to promote their point of view.

 

[EdwardBaiamonte]

Is it your vision that the USA be less rather than more productive, or we should not be concerned for production of goods because you consider service products as more favorable to our economy?

vision is for Republican capitalism to make decisions about proportion of goods and services.

 

[Syriusly]

USA goods could be competitively priced:

It's paradoxical that those choosing to purchase foreign products (usually correctly) believe they're acting in their individual best interests, but annual trade deficits are net detrimental to their nation's economy.

Purchasers of foreign goods gain no competitive advantage which is the only commercial advantage.

[Within USA's existing environments', (i.e. our federal laws and policies):

Enterprises that do not obtain the best values for the costs, place themselves at competitive disadvantage.
Similarly, purchasers spending on behalf of their families, fail to serve them best if they fail to obtain the best values for their costs.
But cheaper foreign goods do not net compensate for our lesser GDP and numbers of jobs due to our trade deficits of goods.

Behaviors adjust to modified environments; its easier to change a nation's laws, rather than attempting to change human nature.
If the USA adopts the global trade policy described within Wikipedia’s article entitled “Import Certificates”, the best interests of USA's individual persons and enterprises would coincide with our nation's best economic interests.

Refer to Wikipedia’s article entitled “Import Certificates”.

Respectfully, Supposn

No link to article. No explanation of what you are proposing.

No- I am not going to bother to go look for whatever you are too lazy to share in your own thread.

 

[Syriusly]

Isn't it the dollar exchange rate that determines the price of American work worldwide, by far?

Actually its only one factor.