Reduce the trade deficit; increase GDP & median wage (union, buy, companies)
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But that single anecdotal example doesn't necessarily mean that there is a cause and effect relationship, between them, nor that they would have the same relationship in another scenario, and least of all does it imply which is the cause and which is the effect.
JTUR88, that was not a single person’s experience. It is a condition typical of an extremely large segment, of workers displaced by trade deficits. Among those that are over the age of 35, it may be at or near a majority of such persons.
Our loss of jobs due to our trade deficit of goods is not limited to the great losses of well paying manufacturing jobs. Much of the vegetables, fruits and meat we consume are imported into the USA.
[Imports of price supported products are restricted and our Department of Agriculture determines the subsidy of exported price supported products. Otherwise our trade deficit would be greater.
Because the transferable IC’s serve as an indirect but effective subsidy of USA exports (at cost only to USA purchasers of imports), the government could reduce the subsidy paid to exporters of price supported products].
You believe a nation can remain great and not produce products? Product producers require the support of other product producers. Due to our trade deficit there are fewer jobs for engineers, agriculturists, and livestock raisers.
I do not blame USA consumers or Wal-Mart or China; the faults entirely due to we USA’s voters and those we elect to congress.
Trade deficits are ALWAYS immediately economically detrimental to their nations’ economies. It is conceivable that a nation can import tools and machinery that will in the future gain ncreased national production. But USA’s trade deficits are not due to national investment; they are to satisfy our want of cheaper consumption goods. Wage earning families access to cheaper foreign imports do not compensate for trade deficits detriment to our median wage.
JTUR88, that was not a single person’s experience. It is a condition typical of an extremely large segment, of workers displaced by trade deficits. Among those that are over the age of 35, it may be at or near a majority of such persons.
I do not blame USA consumers or Wal-Mart or China; the faults entirely due to we USA’s voters and those we elect to congress.
But it was still anecdotal because it was one nation's experience, and the poster was speaking for the nation. And the poster described only one single incident, without putting it into perspective.
You cannot blame the voters. In every election, about 10-15% of the electorate look at their ballot for US Representative and see only one name, the incumbent running unopposed. For a century the US congress has run things so badly, that the voters don't vote FOR anybody anymore, they vote against the worse of two evils, and a vote for third party is wasted. By design. As a result, we have two parties that are both hand puppets to an unchallenged corporate oligarchy. It is circumstantial proof of the certain failure of both the democratic and the free market process. The only thing we gain by a two party system (instead of one) is a check on the most flagrantly and conspicuously corrupt, a sad lesson learned too late by the communists.
Reduce the trade deficit; increase GDP & median wage
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.
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 our GDP. The ICs act as indirect but effective subsidies of USA exports). 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.
Google: wikipedia import certificates trade deficit
Respectfully Supposn
There would still be a rise in prices of imported goods due to supply constraints. Those buying tbills would also buy less and they have less business abroad. Also due to Nafta, this could be circumvented by having imports set up pseudo manufacturing facilities in SEZ over in mexico. SEZ - special economic zones. In the end, it'a a good pipe dream, but I don't think the deficit will ever be reduced by anything significant. No disrespect intended.
Free trade lets us pay less for everything we use and get more for everything we produce.
but we don't have free trade. We live in a manipulated market economy.
Quote:
Originally Posted by marcopolo
Our country and the world as a whole are richer as a result. The idea of import certificates, or tariffs, or bounties, or any other restraint of trade will necessarily produce a lower standard of living for the average citizen.
That would be Utah circa 1850. Brigham Young Said don't drink coffee, tee, smoke tobacco, or drink alcohol. Why? Those things were being shipped overland fright and were draining the gold reserves of the Mormon colony. That was Utah protectionism and it worked quite well.
If you want to increase wages then try upping the minimum wage and putting enough money in the hands of everyone to offset the increased dead weight loss of the higher minimum wage.
One thing that was happening was that foreign central banks were printing money and that was being used to buy debt in the US with. Stopping the sale of debts will tend to balance trade. You can't run a trade deficit unless someone loans you the money to do so.
But it was still anecdotal because it was one nation's experience, and the poster was speaking for the nation. And the poster described only one single incident, without putting it into perspective.
You cannot blame the voters.
.....................they vote against the worse of two evils, and a vote for third party is wasted. By design. As a result, we have two parties that are both hand puppets to an unchallenged corporate oligarchy. It is circumstantial proof of the certain failure of both the democratic and the free market process. The only thing we gain by a two party system (instead of one) is a check on the most flagrantly and conspicuously corrupt, a sad lesson learned too late by the communists.
JTUR88, there have been sufficient observed examples of this condition occurring throughout our nation. I suppose some authoritative organizations within governments’ and academia have gathered some statistics on the topic. My personal observations and logical view point lead me to grant credence to this concept.
You apparently do not share my confidence with this concept.
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I perceive a great need for single issue parties that cannot win elections but definitely can affect the direction or extent of commitment regarding major parties positions regarding the particulsr issue.
If none of the major parties lack acceptable commitment to the political position, voting for the Democratic or Republican candidate is contrary to YOUR OWN political position, YOU have done worse than “squandering” your vote; you have encouraged BOTH major parties to retain their’ positions that are contrary to YOUR OWN.
I am not generally opposed to the Green Party platform but I do not share their priorities.
I voted for the Green Party’s U.S. Congressional House representative congressional 2010 and 2012 and for their Electrical College candidates in 2012. I would not have done any of this if I lived in a swing state.
I suppose Electrical College members are not legally committed to the presidential candidate they profess to represent. If the results of election among the Electrical College became in doubt, I expect the Green Party voters would vote for Obama.
There were no Green Party candidates in 2011; I did not vote that year.
In the future, I’m considering reregistering as a Democrat, re-continuing voting in all primary and general elections but if there’s no acceptable 3d party candidate for a federal office, I’ll refrain from casting vote for that federal office.
There would still be a rise in prices of imported goods due to supply constraints. Those buying tbills would also buy less and they have less business abroad. Also due to Nafta, this could be circumvented by having imports set up pseudo manufacturing facilities in SEZ over in mexico. SEZ - special economic zones. In the end, it'a a good pipe dream, but I don't think the deficit will ever be reduced by anything significant. No disrespect intended.
UC Brian, of course prices of imported goods sold in the USA will increase. USA purchasers of imported goods are the entire cause of our trade deficit and they should pay for the entire remedy.
The open market price of transferable Import Certificates, (ICs) determines the increased prices of foreign goods to USA purchasers.
ICs are an indirect but effective subsidy of USA exports. (Increased USA exports reduce our trade deficit and tend to reduce the open market price of ICs).
Increased IC open market prices induce greater domestic production.
The government does not regulate the world’s open IC markets.
The law is ALL goods entering the USA must be assessed and IC’s covering their values must be surrendered to our government. Surrendered ICs are cancelled.
NAFTA is not a treaty passed by a 2/3 plurality of the U.S, senate. It would not take precedent over the IC law. Because all of our trade agreements are not treaties, the USA has the right (according to our agreement within these trading pacts) to submit 6 months notice of our resignation from the pact. We can live with other nations’ choices.
I have more confidence in this IC proposal than that of any other proposal of economic significance.
but we don't have free trade. We live in a manipulated market economy.That would be Utah circa 1850. Brigham Young Said don't drink coffee, tee, smoke tobacco, or drink alcohol. Why? Those things were being shipped overland fright and were draining the gold reserves of the Mormon colony. That was Utah protectionism and it worked quite well.
A ++++
Sorta funny that Mittens and friends did not figure that out.
Quote:
You can't run a trade deficit unless someone loans you the money to do so.
...If you want to increase wages then try upping the minimum wage and putting enough money in the hands of everyone to offset the increased dead weight loss of the higher minimum wage...
Pie_Row, Excerpted from the discussion of “Reducing the federal minimum wage also reduces the median wage”.
Reducing the federal minimum wage also reduces the purchasing power of the median wage…….
…When the U.S. Congress fails to keep the FMW in pace with the reduced purchasing power of inflated U.S. dollars, such increase of the lower paid jobs actually occur. The effect of FMW’s reduced purchasing power ripples throughout our labor markets…
… Eliminating the FMW replaces a legally specific minimum bench mark with an uncertain and lesser bench mark that would be the most extreme possible reduction of the minimum ‘s purchasing power during whatever national economic conditions exists at any given date.
Reduction of the FMW’s purchasing power will not decrease but rather increase needs for public assistance. It will drive the working poor deeper into poverty and they will be joined by many that are now our middle income earners dependent upon wages and salaries. This is not conducive to improving an economy.
I’m an advocate of annually cost of living adjusted FMW in the same manner as we now update Social Security retirement benefits.
Sorta funny that Mittens and friends did not figure that out.
Ya they should have read their history rather than swallow it hook line and sinker.
Quote:
Originally Posted by Philip T
US is going to find that out soon enough.
Will not be pretty.
The sad thing is that currently people will make things at a loss in order to get USD. When people figure out that they will never get a USD for their Federal Reserve Note. Then things will get fun.
Quote:
Originally Posted by Supposn
Pie_Row, Excerpted from the discussion of “Reducing the federal minimum wage also reduces the median wage”.
Reducing the federal minimum wage also reduces the purchasing power of the median wage…….
...
I’m an advocate of annually cost of living adjusted FMW in the same manner as we now update Social Security retirement benefits.
Respectfully, Supposn
I say set the minimum wage as a function of three things.
As a function of the average of the top 20 total compensation packages.
Adjust it to keep the ratio of house price and household income in line with health. Not above 3.0:1 better at 2.5:1
And to keep the total debt below 125% of GDP.
We live on an exponential debt curve. Wage inflation even with debt accumulation will avoid big economic upheavals. Like the 1930's in the US and the 2000's and the 2010's here as well.
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