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Reduce the trade deficit; increase GDP & median wage

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    Reduce the trade deficit; increase GDP & median wage

    Warren Buffett’s concept to significantly reduce USA’s trade deficit.

    It is not our global trade but our trade deficits’ that are a significant net detriment to our economy.  Trade deficits’ are ALWAYS detrimental to their nations’ GDPs and the detriments are leveraged; they’re significantly larger than the deficits themselves.

    I’m a proponent of a proposal to reduce USA’s trade deficit of goods that was first introduced to the Senate in 2006.  The market driven proposal does not favor or discriminate between foreign nations, or between manufactured, agricultural or any other industries’ products. It is self funding; eventually all expenses are borne by U.S. purchasers of foreign goods.

    The basic concept is for exporters who choose to pay the federal fees to acquire TRANSFERABLE IMPORT CERTIFICATES, (ICs) for the assessed value of their goods leaving the USA.
    Importers would be required to surrender ICs for the assessed value of their goods entering the USA. Surrendered certificates are cancelled.
    This may seem as a boon to exporters of USA goods but it’s actually an indirect and effective export subsidy.

    The version of this policy I advocate would exclude values of specifically listed scarce or precious minerals integral to the goods being assessed.  The IC fees defray all government
    expenses due to this proposal.

    This trade policy would significantly decrease USA’s trade deficit of goods and increase the aggregate sum of USA’s imports plus exports and our GDP more than otherwise.  The GDP bolsters the median wage.

    Wage earning families benefit from cheaper imported goods but every day of every year they’re dependent upon their U.S. wages.  Regardless of how small the additions to imports’ prices due to Import Certificates, (unlike tariffs) USA’s assessed imports could never exceed that of our exports.  USA consumers will be able to purchase cheap, (but not the absolute cheapest) imported goods.  We cannot afford the absolute cheapest.
    Refer to:
    or Google: “  wikipedia, import certificates “.

    Respectfully, Supposn