Warren Buffett's concept to significantly reduce USA's trade deficit

[Supposn]

An economic stimulus at no expense. Warren Buffett’s proposal to significantly decrease USA’s trade deficit.
I'm a proponent of Warren Buffett’s concept to significantly decrease USA’s trade deficit of goods. A senate bill based upon the concept was proposed in 2006 by Senators Dorgan and Feingold.
Trade deficit's detriment to the gross domestic product, (GDP) exceeds the amount of the deficit itself. Anything detrimental to the GDP is generally detrimental to the median wage.

As proposed to the U.S. Senate, goods leaving the USA would be assessed and transferable IMPORT certificates for their assessed value would be issued to the exporter.

Importers would be required to surrender transferable IMPORT certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled. This would significantly reduce our trade deficit and induce the sum of our imports plus exports to increase.

GDP and median wage are the most indicative measures of current production and distribution of wealth. Due to significantly reducing our trade deficit of goods and supporting our exports, this proposal would increase USA's GDP and median wage. It would also encourage the aggregate sum of USA’s imports plus exports to increase. We can continue enjoying cheap, (but not the absolute cheapest) foreign goods.

This is a permanent economic stimulus that doesn’t require federal disbursement or risk of trillions of dollars. I'm aware of no single economic proposal that could accomplish all this with less government intervention and less increased prices of imported goods.

Although the initial 2006 bill draft would be of small expense, I’m among those that regret that draft was not, (as it should have been) completely self funding.

The 2006 initial draft of the bill would not apply to petroleum goods for five years from the date of enactment. We regret that it did not (forever) exclude the values of specifically listed precious or scarce materials integral to goods being assessed. Enabling the export made in USA cast gold paperweights imbedded with precious gems in order to import electronic goods would undermine the bill’s purpose.

Refer to: World Wide Web site “USA-Trade-Deficit,Blogspot.Com “.
Respectfully, Supposn

 

[Supposn]

Within another topic, Working Man asked “For what reason should a tariff such as this, (Israel tariff), be imposed on such a product by the Israeli government?

Working Man, this wouldn’t occur if USA’s adopted trade practices for our own best interest rather than altruistically considering the interests of other nations to rake precedent over those of our own wage earners.

Refer to www.USA-Trade-Deficit.Blogspot.Com

Respectfully, Supposn

 

[sparky]

VAT would be nice.....~S~

 

[editec]

A VAT on imported good, you mean, Sparky?

Sure why not?

That's what happens to our exports when they arrive at most countries.

 

[Supposn]

A VAT on imported good, you mean, Sparky?
Sure why not?
That's what happens to our exports when they arrive at most countries.

Sparky & Editec, I'm a proponent of replacing (to the most practical extent), income and payroll tax revenues with a sales tax revenue.

Among all sales tax methods, Value Added Tax, (VAT) is the most amiable to commercial enterprises, least susceptible to tax evasion or other frauds, the least expensive to enforce and carries absolutely no hidden additional sales tax imbedded within any level of sales transactions.

Businesses appreciate its lesser intervention to their cash flow. It provides them with the fasted refund of any sales taxes that the6y themselves have paid. Only the absolute ultimate non-commercial domestic consumers of goods and services would pay any VAT.

The nature of all sales taxes is the ultimate consumers need keep any records or file any tax forms. They have absolutely no need for tax attorneys. Businesses and entrepreneurs have need for them only if they attempted to practice tax fraud.

Respectfully, Supposn

 

[The Rabbi]

An economic stimulus at no expense. Warren Buffett’s proposal to significantly decrease USA’s trade deficit.
I'm a proponent of Warren Buffett’s concept to significantly decrease USA’s trade deficit of goods. A senate bill based upon the concept was proposed in 2006 by Senators Dorgan and Feingold.
Trade deficit's detriment to the gross domestic product, (GDP) exceeds the amount of the deficit itself. Anything detrimental to the GDP is generally detrimental to the median wage.

As proposed to the U.S. Senate, goods leaving the USA would be assessed and transferable IMPORT certificates for their assessed value would be issued to the exporter.

Importers would be required to surrender transferable IMPORT certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled. This would significantly reduce our trade deficit and induce the sum of our imports plus exports to increase.

GDP and median wage are the most indicative measures of current production and distribution of wealth. Due to significantly reducing our trade deficit of goods and supporting our exports, this proposal would increase USA's GDP and median wage. It would also encourage the aggregate sum of USA’s imports plus exports to increase. We can continue enjoying cheap, (but not the absolute cheapest) foreign goods.

This is a permanent economic stimulus that doesn’t require federal disbursement or risk of trillions of dollars. I'm aware of no single economic proposal that could accomplish all this with less government intervention and less increased prices of imported goods.

Although the initial 2006 bill draft would be of small expense, I’m among those that regret that draft was not, (as it should have been) completely self funding.

The 2006 initial draft of the bill would not apply to petroleum goods for five years from the date of enactment. We regret that it did not (forever) exclude the values of specifically listed precious or scarce materials integral to goods being assessed. Enabling the export made in USA cast gold paperweights imbedded with precious gems in order to import electronic goods would undermine the bill’s purpose.

Refer to: World Wide Web site “USA-Trade-Deficit,Blogspot.Com “.
Respectfully, Supposn

Could you explain this scheme a little? You lost me somewhere in there.

 

[Supposn]

Could you explain this scheme a little? You lost me somewhere in there.

Rabbi, my message links to www.USA-Trade-Deficit.Blogspot.Com
(I notice a typo error in at least one of this link within my prior messages. No one considers links or they are so unimpressed with my message to introduce this concept?

That linked site further provides the link, www.USA-Imports.Blogspot.Com
I thought they’re written in a fairly straight forward manner. If you have any specific questions, thoughts or criticisms regarding this concept, I’d be pleased to discuss it with you.

Respectfully, Supposn

 

[The Rabbi]

I've read it and still don't understand it.
It seems that importers will be required to buy import licenses from exporters. Obviously there will be more demand for import licenses than supply. Thus the price of a license will go up, increasing the cost of imported goods and decreasing the cost of exported goods. This is in effect a tariff on imports, but without the government getting any of the revenue. Such a tariff will drive up costs of goods to U.S. consumers.
I honestly fail to see the virtue of this. So did Congress. And the proposal is at least 4 years old.

 

[Supposn]

Rabbi,
You have read what? Did you read the second topic, “Warren Buffett’s concept to significantly decrease USA’s global trade deficit of goods”
Within www.USA-Trade-Deficit.Blogspot.Com ?
The first topic, “A nation’s trade deficit is always a net economic detriment” explains the need for such a trade policy. Each of the messages are less than a single page length.

Excerpted from www.USA-Trade-Deficit.Blogspot.Com :
“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”.

Similar to tariffs, Buffett’s proposal would increase the prices of foreign goods to USA purchasers. Unlike tariffs, the extent of price increases would primarily be determined by the market rather than the government. Assessing the value of goods is a technical rather than s policy decision.

Unlike tariffs, exporters’ additional revenue due to their use or sale of the transferable IMPORT certificates are in effect decreases their expenses for USA exported goods. This proposal would induce an increased sum of USA’s aggregate imports plus exports.

Unlike tariffs, contra trade practices such as currency manipulation or inhibiting USA goods entering or being sold within foreign nations would self inflict almost immediate harm upon those nations. Because the value of USA’s imports could not exceed the adjusted assessed value of our exports, the foreign interests could inflict little harm upon us.

[Presently we seek pure free trade. The conflicting goals within our government departments often inhibit USA exercising existing laws to guard our best interests. We would do better if USA negotiators had no discretion. USA negotiators would simply shrug and declare “this is our existing trade laws and it is beyond our power to negate them”].

Each dollar of USA’s deficit of goods costs us three dollars of GDP. The GDP bolsters the median wage. USA consumers could still enjoy cheaper, (but not the absolute cheapest) prices for foreign goods. USA families purchase foreign goods but they are dependent their wages every day within every year.

Respectfully, Supposn

 

[sparky]

perhaps this fits here Supposn............

With 10 percent national unemployment, now more than ever, 52 percent of Americans believe that “free trade” is responsible for hurting job prospects nationwide. This is compared to just 13 percent who believe our policies encourage job growth. The remainder either had no opinion one way or the other or refused to answer.

Perhaps the most telling detail of the survey is the huge gap between our economic and political elite and the rest of the population.

The immensely influential Council on Foreign Relations (CFR) – made up of politicians, businessmen, and nearly every viable Presidential candidate – is almost uniformly in favor on “free trade” as a the primary approach for America in international commerce. Nearly 90 percent of CFR members believe that pursuing trade agreements like NAFTA and the WTO are a good way of building prosperity in the United States. This is more than double the proportion of average Americans who believe the same.


The False Promises of Free Trade | Economy In Crisis

~S~

 

[The Rabbi]

About 52% of Americans voted for Obama. So the figure is largely meaningless. Additionally most people think:
1) Outsourcing is primarily responsible for loss of jobs
2) Protecting domestic industries will create jobs.

Both of these are demonstrably and patently false.
The proposal puts us back into the old mercantilism mindset, with every country trying to export more than it imports. It didnt work too well then either.
Fortunately this has no chance whatsoever of passing.

 

[Supposn]

Rabbi, what will or won’t work is not subject to a public opinion poll. Yesterday public opinion deemed the world was flat. Today they deemed the earth’s a globe. The universe has not changed the earth’s elementary characteristics but opinions certainly changed.

Yesterday the contention that health insurance should be an American's right was fiercely debated, In 2012 the Republican Party will strongly criticize the health reform act but they wouldn’t dare contend that health insurance should not me the right of every American. Public opinion has already begun to greatly changel.

You have stated your two points of opinions without providing any logical arguments or facts.

I have not written “Outsourcing is primarily responsible for loss of jobs “. I have written that a trade deficit is always detrimental to a nation’s Gross Domestic Product and there’s a positive relationship between a nation’s GDP and median wage.

I’m not opposed to global trade but I’m opposed to USA’s trade deficit’s detriment to our median wage. A trade policy based upon Buffett’s concept would increase the sum of our aggregate imports plus exports.

If for no better reason than to know my opponents, I’m interested in arguments and facts that are contrary to my own opinions.
If you share that practice, refer
to WWW.USA-Trade-Deficit.Blogspot.Com
and WWW.USA-Imports.Blogspot.Com
Respectfully, Supposn

 

[The Rabbi]

People become wealthy by making transactions. If you artificially discourage making those transactions then you discourage wealth.
In this case even though a trade imbalance is a negative, the cure would be worse than the disease.

 

[Supposn]

People become wealthy by making transactions. If you artificially discourage making those transactions then you discourage wealth.
In this case even though a trade imbalance is a negative, the cure would be worse than the disease.

Rabbi, there are agreement and contracts that have been deemed contrary to the public interest. Simply because you’re able to improve your financial condition by raising pigs near my home, or by leasing out a firetrap within your property or numerous other illegal agreements do not legally justify your taking such actions.

The justification of this proposal is that a trade deficit is ALWAYS and this proposal would NEVER be detrimental to a nation’s GDP.

Respectfully, Supposn

 

[Supposn]

Perhaps the most telling detail of the survey is the huge gap between our economic and political elite and the rest of the population.The False Promises of Free Trade | Economy In Crisis
~S~

Excerpted from WWW.USA-Trade-Deficit.Blogspot.Com

"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)"?

 

[The Rabbi]

People become wealthy by making transactions. If you artificially discourage making those transactions then you discourage wealth.
In this case even though a trade imbalance is a negative, the cure would be worse than the disease.

Rabbi, there are agreement and contracts that have been deemed contrary to the public interest. Simply because you’re able to improve your financial condition by raising pigs near my home, or by leasing out a firetrap within your property or numerous other illegal agreements do not legally justify your taking such actions.

The justification of this proposal is that a trade deficit is ALWAYS and this proposal would NEVER be detrimental to a nation’s GDP.

Respectfully, Supposn

Are you honestly comparing commercial activity to life or health-endangering situations? Really?
You lose credibility here with each post.

 

[Supposn]

Rabbi, there are financial agreements and contracts that have been deemed contrary to the public interest. Deregulating and less than diligent enforcement of existing regulations has just recently severely harmed our nation’s financial economy has been responsible for global financial and economic fiascos.

Trade deficit is ALWAYS and this proposal would NEVER be detrimental to a nation’s GDP.

I lose credibility? There's a self serving remark.

Respectfully, Supposn

 

[The Rabbi]

Rabbi, there are financial agreements and contracts that have been deemed contrary to the public interest. Deregulating and less than diligent enforcement of existing regulations has just recently severely harmed our nation’s financial economy has been responsible for global financial and economic fiascos.

Trade deficit is ALWAYS and this proposal would NEVER be detrimental to a nation’s GDP.

I lose credibility? There's a self serving remark.

Respectfully, Supposn

Please. Show me where an otherwise lawful transaction between private parties is going to be deemed "against the public interest".
When gov't can dictate who can sell what to whom on what terms we are in the gulag.

 

[Supposn]

This proposal recognizes that trade deficits are contrary to our economic interests. It requires Import Certificates be surrendered to cover the assessed value of goods entering the USA.

Exporters of USA goods are not mandated to do anything.

Respectfully, Supposn

 

[Supposn]

Rabbi, within Buffett’s concept, no government or any other organization, (foreign or domestic) are granted any discretion of policy. Assessing goods’ values are technical rather than policy decisions.

On the contrary if (as both Republican and Democratic presidents have complained), foreign nations have been manipulating the global currency market and/or preventing U.S. goods from competing within foreign markets, those efforts would inflict insignificant (if any) harm to USA’s economy. Foreign entities that attempt to undermine us would be doing themselves almost immediate harm.

Federal trade negotiators could no longer determine which of various and often conflicting USA factions, (including conflicting goals of U.S. government departments) to support or betray). They cannot negate the law.

The law would require Import Certificates be surrendered to cover the assessed value of goods entering the USA.

Exporters of USA goods are not mandated to do anything; they may choose to pay the fees in order to acquire (and profit from) transferable IMPORT Certificates. The fees are set with the advice of the CBO to cover all of the federal net assessment and administration expenses due to this trade policy,

Respectfully, Supposn