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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.

    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.  The fees defray all direct federal expenses due to this proposed policy.

    Importers would be required to surrender ICs for the assessed value of their goods entering the USA. Surrendered certificates are cancelled.
    These transferable Import Certificates 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 is completely market driven, funded by U.S. purchasers of foreign good and excludes values of specifically listed scarce or precious minerals integral to goods being assessed.

    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
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    Two things have caused the present resession problem in America.
    Minimum wages is one.

    The first is related to the second.

    Labor Supply doubled in the process of incorporation of women into the work force, beginning with WWII and was excrebated by the Feminist Sexual Revolution of 1960.

    The Economic Law of Supply and Demand applied to this sudden doubling has reduced real wages for unskilled general labor to half.
    This situatrion was then tolerated to the oint that minimum wages were not increased in accord with the inflation of all other economic costs.
    If the minimum wage had kept pace with the rise of inflation, doubling that wage every 10 years, $35/hour would be about right for this moment in time.

    Had the minimum wage been such, the work force would be aboiut haldf the present size,nd either a male or a female house"wife" would be mandated by lack of employment.
    This would not require unemployment insurance since this half of the work force had not ever been employed.
    It would also have reduced the Welfare Rolls since High School Drop Out would have been making a livable wage and marriages would ave followed.

    The Housing Bubble would not have occurred since the wage of the one worker applying for a mortgage would have been used to calculate the amount of the loan.
    The other potential employee, the mate, would have een the traditional back up to those predictable layoffs and short periods of unemployment.

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    Cupid Dave, is your message regarding recession, minimum wage and our labor supply in response to my discussion of USA’s trade deficit? It’s a “stretch” to associate these factors with our trade deficit.

    I don’t have any remedy that significantly could promise to mend our nation’s educational ills; more than any other facet of our federal and state governments, any significant educational improvement would be equally reflected with an economic upswing of the greatest extent.

    Our nation has been unable to concur upon which tax loop holes to eliminate, which expenditures to reduce and the disposition of the resulting net budget savings.

    Aside from libertarians, across all major segments of the political spectrum, the registered party members are not aligned with their party leadership with regard to pure free global trade. Across all party lines there is a general opinion that the great proportion of imported goods within our domestic markets is contrary to our best interests.

    I am fully confident this Import Certificate proposal for USA’s global trade would certainly be of significant economic benefit to our nation. It requires no net expenditures and thus would not deny resources from any other programs to improve our nation.
    Regarding your responding message’s reference to minimum wage, refer to “Consequences of repealing minimum wage rates” posted @ 4:53, April 4, 2012.

    Within that post I advocated annually cost of living adjusting the federal minimum wage rate. I believe this would be economically beneficial to our wage and salary earners and particularly to the lower quarter of those income earners who are in the greatest need of relief.

    Our nation has never experienced a significant and sustained economic improvement that did not commence or very soon include a significant increase of the median wage’s purchasing power.

    Annual cost of living adjusted minimum wage will not provide an extremely significant economic benefit but it would of no direct cost within our federal budget. Similar to my grandmother’s chicken soup, it makes things better. Anyone that ate my grandmother’s soup for 100 years would be guaranteed a long life.

    Respectfully, Supposn
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    Cupid, ONE thing has cause the present problem in America just as it has caused every economic disaster in the past 125 years....wild west style capitalism.
  • Are you sure you want to delete this post?
    buy a car made in Detriot or Atlanta by a U.S. company it's simple
  • Are you sure you want to delete this post?
    Read Weath of Nations