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

[expat_panama]

...Regarding your “historic data”...

huh, I thought it was 'our' historical data. Did you have different historical data?

...you’re confusing cause and effect...

How about we solve the problem and agree that there's neither cause nor affect between trade deficits and GDP, and only a correlation between greater trade deficit and rising GDP?

 

[Widdekind]

historic data show that the GDP increases when imports grow more than exports.

Since 1929 (excluding WWII), US real GDP growth has been moderately correlated with real import growth; and weakly correlated with real export growth. Historically, surging production at home demands more imports from abroad; without (strongly) affecting foreign appetites for US exports. Foreign demand for US exports has not been strong enough, to drive US growth. US growth derives from other factors -- which, when present, demand many more imports (inputs, raw materials, intermediate products) from abroad. The ratio is about 1:3, to grow domestic output by 10%, requires 30% more imports:

 

[Widdekind]

The US trade deficit in goods & services "leaks" dollars abroad. Foreigners only accept those dollars, when they can buy capital assets (stocks, bonds, real-estate) with them. If the sale of US capital assets, to foreigners, is actually a cause of concern; then Government should be invoked directly at the root of the problem; and Laws should ban the sale of those capital assets abroad. Then foreigners would not be able to buy anything with excess dollars, that they got from trade. And so foreigners would reduce their own imports to the US, voluntarily.

In net, the US is selling off domestic capital assets (stocks, bonds, real-estate) for cheap foreign goods & services. If the US stopped selling off capital, then the counter flow of foreign products would dry up, of its own accord. To keep importing at current levels, the US must "export" some things of equal value. If not capital, then some things that foreigners are both willing & able to buy, some things that they both want & can pay for.

Perhaps the US could "export" construction projects? Perhaps the US, in exchange for cheap foreign imports, could build or improve foreign harbors, rail-roads, infrastructure, energy, education ? De-salination plants ? Perhaps the US could "export" global-public education ? Some means of boosting US exports "has" to be possible.

 

[Supposn]

...Regarding your “historic data”...

huh, I thought it was 'our' historical data. Did you have different historical data?

...you’re confusing cause and effect...

How about we solve the problem and agree that there's neither cause nor affect between trade deficits and GDP, and only a correlation between greater trade deficit and rising GDP?

ExPat Panama, I sit corrected because I don’t stand over my key board. You’re correct; it’s our historic data.

A nation’s global trade balance is directly or indirectly a factor of every conventional formula acceptable among communities of economists and of statisticians throughout the world. We can argue as to what’s cause and what’s affect but the fact is there is a relationship that is beyond merely a correlation. To declare otherwise would certainly be a falsehood.

I have availed myself of the link you provided. Thus far every one of the sites I’ve reached through your link has directly included the nation’s global trade balance as an integral factor within the formula to calculate GDP. The resulting nations’ GDPs amounts due to implementing those formulas are increased by their trade surpluses or decreased by their trade deficits.

Using your link I have not yet encountered a GDP formula that does not directly include global trade balance as an integral factor but I suppose such formulas exist. When I do encounter such a formula, I would expect that formula to yield a GDP amount that’s similar to the yield provided by the commonly employed expenditure formula.
If it were otherwise than obviously one or both formulas are faulty.

Because economists and statisticians agree that global trade balance is a factor of GDP, I would expect that a formula not explicitly including global trade balance as a factor, employs one or more factors within which that balance is integral to those other factors.

I do not expect to find a genuine GDP formula that does not directly or indirectly reflect the nation’s global trade balance.

Respectfully, Supposn

 

[Supposn]

Excerpted from a post within the topic entitled
“Obama policies About to kill a small business”:

“Quantum Windbag, Bill Keith and his SunRise Solar company’s fans for attics would sell very well if we conducted our global trade to serve our own best interests”.

Respectfully, Supposn

 

[EdwardBaiamonte]

Some means of boosting US exports "has" to be possible.

eliminate the very liberal corporate tax and they could cut prices significantly. Do you think that would help??

Make liberal unions illegal again. Do you think that would help?

Make liberal schools illegal so our workers are not the dumbest in the world. Do you think that would help?

Make health care capitalist to cut costs by 75% so business could reduce prices significantly. Do you think that would help?

 

[EdwardBaiamonte]

if we conducted our global trade to serve our own best interests”.

Respectfully, Supposn

yes, imagine the boom to our economy if we made foreign trade illegal. The auto companies alone would need 5 million new people tomorrow!!! Its so obvious!!!

 

[expat_panama]

...if we made foreign trade illegal...

Drinking coffee: 15 years hard labor plus forfeiture of all assets. Possession of chocolate: life without parole.



Then again, maybe we can all sober up and deal with the fact that foreigners exist and that if free people decide to buy their stuff that's their business and nobody else's.

 

[EdwardBaiamonte]

...if we made foreign trade illegal...

Drinking coffee: 15 years hard labor plus forfeiture of all assets. Possession of chocolate: life without parole.



Then again, maybe we can all sober up and deal with the fact that foreigners exist and that if free people decide to buy their stuff that's their business and nobody else's.

ah but if we had to grow our own coffee, in green houses probably, we'd have a huge new industry over night that employed millions.
It makes no sense to get it so cheaply from where it grows naturally!!
Nevermind that domestic coffee would cost 20 times as much.

 

[Supposn]

Some means of boosting US exports "has" to be possible.

eliminate the very liberal corporate tax and they could cut prices significantly. Do you think that would help??

Make liberal unions illegal again. Do you think that would help?

Make liberal schools illegal so our workers are not the dumbest in the world. Do you think that would help?

Make health care capitalist to cut costs by 75% so business could reduce prices significantly. Do you think that would help?

Baiamonte, I’m a proponent of the U.S. market driven Import Certificate trade policy that would significantly reduce USA’s trade deficits, increase our GDP, median wage and our exports. What’s to advantage to multi-national corporations is not necessarily to the best interests of USA’s economy. Our seeking of pure free trade is detrimental to USA’s domestic enterprises, those dependent upon wages and salaries.

Ships unload finished goods and carry away scrap metal from our ports. ALL USA taxpayers pay to subsidize exports of price supported agricultural products after we previously paid to subsidize their growth.

You pretend that opposition to USA’s trade deficit equates to opposition of USA’s global trade. The IC proposal which is eventually and completely funded by USA purchasers of foreign goods would eliminate USA’s trade deficit of adjusted assessed goods. The ICs are an indirect but effective subsidy of USA’s exported goods.

Refer to:
“Trade deficits are ALWAYS detrimental to their nations’ GDPs”;
or to
“ http://www.usa-trade-deficit.blogspot.com/ ”.

Respectfully, Supposn

 

[EdwardBaiamonte]

Baiamonte, I’m a proponent of the U.S. market driven Import Certificate trade policy

too stupid a tariff is merely another tax on the American people like the Hawley Smoot tarrif that helped cause the Great liberal Depression.

Our seeking of pure free trade is detrimental to USA’s domestic enterprises, those dependent upon wages and salaries.

too stupid, its like saying free trade between NYS and Connecticut hurts NYS!!

You pretend that opposition to USA’s trade deficit equates to opposition of USA’s global trade. The IC proposal which is eventually and completely funded by USA purchasers of foreign goods would eliminate USA’s trade deficit of adjusted assessed goods. The ICs are an indirect but effective subsidy of USA’s exported goods.

too stupid a tariff and trade war will make us poorer and less competitive on world markets

 

[EdwardBaiamonte]

Some means of boosting US exports "has" to be possible.

eliminate the very liberal corporate tax and they could cut prices significantly. Do you think that would help??

Make liberal unions illegal again. Do you think that would help?

Make liberal schools illegal so our workers are not the dumbest in the world. Do you think that would help?

Make health care capitalist to cut costs by 75% so business could reduce prices significantly. Do you think that would help?

Baiamonte, I’m a proponent of the U.S. market driven Import Certificate trade policy

also you are too stupid to address points I made above regarding how to correct our weak economy without taxing imports or making imports illegal!

Did you think no one would notice you changed the subject????

See why we are positive a liberal will be slow??

 

[expat_panama]

...if we had to grow our own coffee, in green houses probably, we'd have a huge new industry over night that employed millions...

Let's consider this a bit.

I once heard a guy at the union hall (musician's union) complaining about foreign music imports. So now we ban Chopin and Beethoven. Foreign books too; no more selling say, the Bible. Stiff tariffs on all foreign travel and that should apply to US gov't purchases; now we shut down all US embassies. Ban all ground transportation from Alaska to the lower 48 though Canada. Next time a doctor tells you to take a medical procedure developed overseas, tell him you'd rather die.

Are we all together on where this is going yet?

 

[EdwardBaiamonte]

...if we had to grow our own coffee, in green houses probably, we'd have a huge new industry over night that employed millions...

Let's consider this a bit.

I once heard a guy at the union hall (musician's union) complaining about foreign music imports. So now we ban Chopin and Beethoven. Foreign books too; no more selling say, the Bible. Stiff tariffs on all foreign travel and that should apply to US gov't purchases; now we shut down all US embassies. Ban all ground transportation from Alaska to the lower 48 though Canada. Next time a doctor tells you to take a medical procedure developed overseas, tell him you'd rather die.

Are we all together on where this is going yet?

ah but the liberals don't care? Ban auto imports today and tomorrow we have 5 million new unionized jobs in the domestic auto industry and the depression is over!!
Not one liberal will find fault with that.

 

[Supposn]

Baiamonte, I’m a proponent of the U.S. market driven Import Certificate trade policy

too stupid a tariff is merely another tax on the American people like the Hawley Smoot tarrif that helped cause the Great liberal Depression.

Our seeking of pure free trade is detrimental to USA’s domestic enterprises, those dependent upon wages and salaries.

too stupid, its like saying free trade between NYS and Connecticut hurts NYS!!

You pretend that opposition to USA’s trade deficit equates to opposition of USA’s global trade. The IC proposal which is eventually and completely funded by USA purchasers of foreign goods would eliminate USA’s trade deficit of adjusted assessed goods. The ICs are an indirect but effective subsidy of USA’s exported goods.

too stupid a tariff and trade war will make us poorer and less competitive on world markets

Baiamonte, although there are similarities, tariffs and Import Certificates differ. You’re unwilling or unable or too lazy to fault Import Certificates? The proposed IC policy is superior to pure free trade and all other global trade policies I’m aware of.

You wish to rewrite history? Your contention that the Hawley Smoot tariff acts contributed to or extended the duration of the depression is at best incorrect and at worst a deliberate lie.
You use the word “liberal” as an additional adjective to what we both agree was the 1929 stock market crash and “great” depression.
Republicans held the majority of both congressional chambers from 1919 to 1931.
All presidents from 1920 to 1932 were Republicans.

I assume you to be knowledgeable of the constitutional limitations upon states regulatory rights with regard to goods entering their state’s jurisdictions. I also assume that you’re not ignorant of what is of concern to all local or state “chambers of commerce”. They are all very much in competition with others beyond their borders for production facilities the commercial facilities that provide tax revenues, serve and employ their citizens.

I would not describe you as stupid if you are unaware of this. When you choose to accept more creditable information you will be less ignorant.

Respectfully, Supposn

 

[Supposn]

Eliminate the very liberal corporate tax and they could cut prices significantly. Do you think that would help??

Make liberal unions illegal again. Do you think that would help?

Make liberal schools illegal so our workers are not the dumbest in the world. Do you think that would help?

Make health care capitalist to cut costs by 75% so business could reduce prices significantly. Do you think that would help?

also you are too stupid to address points I made above regarding how to correct our weak economy without taxing imports or making imports illegal!

Did you think no one would notice you changed the subject????

See why we are positive a liberal will be slow??

Baiamonte, you’re off topic, you're wrong and you lack civility.
Within this discussion thread I try not to discuss or debate topics other than our global trade policy.

I’ve written about taxes, education and healthcare within this discussion group. I’ve started some and contributed to other such discussions.

I’m a proponent of an Import Certificate policy that does not increase net government expenses and thus would not hinder anything else congress is likely to consider for the improvement of our nation.

Respectfully, Supposn

 

[Supposn]

...if we made foreign trade illegal...

Drinking coffee: 15 years hard labor plus forfeiture of all assets. Possession of chocolate: life without parole.

Then again, maybe we can all sober up and deal with the fact that foreigners exist and that if free people decide to buy their stuff that's their business and nobody else's.

ExPat_Panama & Baiamonte, you write of your speculations as to what would not be imported under an Import Certificate policy.

Because the IC policy is market driven, it’s all speculative. But since the determination is within a free competitive environment, it will be generally correct in aggregate. The elimination of our trade deficit of assessed goods will cap the extent of our job losses due to cheaper labor. The IC’s are an indirect but effective subsidy of USA exports.

Respectfully, Supposn

 

[expat_panama]

...if we made foreign trade illegal...

...deal with the fact that foreigners exist and that if free people decide to buy their stuff that's their business and nobody else's.

...you write of your speculations as to what would not be imported under an Import Certificate policy...

Actually no, a state run import certificate system had never entered our minds. We were considering a total ban on imports.

... the IC policy is market driven...

--if that makes the system good, then we should both eliminate tariffs altogether, and forgo the state managed certificate system.

 

[expat_panama]

...if we had to grow our own coffee, in green houses probably, we'd have a huge new industry over night that employed millions...

...Next time a doctor tells you to take a medical procedure developed overseas, tell him you'd rather die. Are we all together on where this is going yet?

...the liberals don't care...

I agree that protectionism is a loopy leftwing view, but there are lots of protectionists that say they're conservative and get angry (ok, more angry) if you say their tax'n'spend state economy is leftist.

 

[editec]

We complain about the US government sudsidues that would increase jobs in the USA because that is creeping socialism.

But we enjoy the Chinese government's various subsidies that increase jobs in Communist China?

So let me get this straight...here in the USA we hate communism.

But communist enslavment is okay with us when it comes to hiring people to make our consumer goods offshore?

Got it!