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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
It's a very old concept. Formerly called "bounty". I support it, but for some reason people are very reluctant to tariffs. I guess they rather have money taken out of their paychecks.
In general, tariffs on imbalanced trade is a good thing.
So how do you do the math on "accessed value?"
Philip T, we disagree, but here I describe a proposed remedy.
Refer to the discussion of “Trade deficits are ALWAYS an immediate detriment to their nations’ GDPs” for a description of the illness.
What do you mean by "accessed value”?
Within this proposed Import Certificates, (ICs) policy, all assessment values are expressed in U.S. dollars as approximately valued at USA ports.
All assessments should be performed by the same federal agency in a similar manner. Annually the assessment guide lines should be reviewed for any necessarily required changes.
You’ll note that other than the U.S. dollars values of the exported products for which the requested assessment was provided, all other printing on the ICs are for better enabling administration and hindering counterfeiting of the ICs. “Change” can be made for differing denomination amounts similar to changing a monetary currency.
The classification of goods or the foreign nationalities of the produced goods are themselves inconsequential to the Import Certificate. Transferable ICs issued to exporters of USA beef could be surrendered by importers of foreign produced washing machines. The surrendered ICs are then cancelled; they cannot be surrendered twice.
Philip T, we disagree, but here I describe a proposed remedy.
Refer to the discussion of “Trade deficits are ALWAYS an immediate detriment to their nations’ GDPs” for a description of the illness.
What do you mean by "accessed value”?
misspell on my part. I was actually trying to ask you about this . . .
Quote:
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.
How in Good Faith is this number reliably created?
You follow I am just asking?
Transnational Corporation Lobbies will push for inflation of the export values to justify additional low cost, high profit imports.
It's a very old concept. Formerly called "bounty". I support it, but for some reason people are very reluctant to tariffs. I guess they rather have money taken out of their paychecks.
Whole lotta intentional mis-education on the part of the Transnational Corporations.
Includes most of Corporate Commentators (e.g. Rush Dimbulb) for the low-end folks, to the CFR for the top-end folks.
Trim package is different, but the message is the same -- Only little (human) people should pay taxes, Transnational Corporations pay none.
misspell on my part. I was actually trying to ask you about this . . .
How in Good Faith is this number reliably created?
You follow I am just asking?
Transnational Corporation Lobbies will push for inflation of the export values to justify additional low cost, high profit imports.
Philip T, since our nation began, the U.S. Customs Service has been assessing the values of goods and collecting tariffs. They are now the U.S. Bureau of Customs and Border Protection which is part of the U.S. Department of Homeland Security . They would be the logical agency to assess the values of goods. They are now responsible for our nation’s border security.
Any exporter of goods (manufactured or essentially rebuilt within the prior two years) and willing to pay the fees that defray all net direct federal expenses due to this trade policy, is entitled to have their goods assessed. Upon their goods leaving the USA, Transferable Import Certificates, (ICs) with face values equal to the assessed values of their goods leaving the USA will be issued to the exporters.
The assessments are reasonable approximations. It’s important that the assessments of differing goods be reasonably in correct proportion to each other and all import or export goods be assessed in a similar manner.
The assessment fees themselves are only of nominal importance. It’s the open competitive market price of the transferable ICs that serve as indirect but effective subsidy of U.S. exported goods.
Every exporter of U.S. goods will have vested interests to oppose their competitors being granted more favorable assessments.
All importers of foreign goods have vested interests to oppose their goods being excessively assessed.
Remember that imports and exports must be assessed in a similar manner.
I suppose that there’s always been a legal structure of hearings to adjudicate disputes regarding U.S. Customs decisions.
Homeland Security should be aware of everything and everyone entering U.S. ports. Within this proposal They'll have additional eyes assessing all imported goods, additional revenue that’s eventually provided by U.S. purchasers of foreign goods to cover the expenses of those additional eyers and U.S. manufacturers lobbying that goods entering the USA be fully assessed and the Import certificate be properly collected and cancelled. All of this activity increases the difficulty of smuggling contraband into to USA and thus actually increases our Homeland border security.
Every exporter of U.S. goods will have vested interests to oppose their competitors being granted more favorable assessments.
All importers of foreign goods have vested interests to oppose their goods being excessively assessed.
Remember that imports and exports must be assessed in a similar manner.
ahhh, I see. You sincerely believe in markets, then?
Just for a counter-point -- Here is the observed practice . . . industries tend to form a consensus -- not an ideal competitive market.
While a market believer may think that different companies are somehow competitors -- probably from some formal education theory -- in practice, that is often not the case.
This is sometimes called Trust behavior, or price-fixing, or collusion, but the end result becomes the same. All producers, suppliers, etc., figure out that it is no ones interest to cut each others' throats.
Happens in the energy industry, medical industry, on and on.
What will stop the collective importers / exporters from collectively figuring to value all imports low, and all exports high?
You understand that I am not trying to undercut your ideas -- I like them -- just trying to figure how what I see as obvious problems can be handled. The various fed agencies you are discussing have no legit way of determining the real values, either.
Philip T, we’re frequently required to choose between valid, (sometimes equally valid) concepts that more or less are contrary to each other. Judges entire careers are based upon such decisions.
I believe in free competitive markets but I’m aware of the possibilities for conspiracy, bribery and human weaknesses. This proposal is superior to any other exiting or proposed trade policy I’m aware of.
I have no animosity to any nation’s people but I’m not willing to sacrifice the interests of USA’s wage earners for the benefit of any other nations’ laborers.
If the U.S. Congress determines we should practice a more altruistic global trade policy, the burden of that policy should be borne by all taxpayers.
USA’s wage earners do not enjoy the major portion of our nation’s incomes and wealth; they should not suffer the major portion of our trade deficit’s detriment to our GDP, numbers of jobs and median wage.
Unlike pure free trade, while not limiting USA’s imports of goods to any specified amount, it caps our imports to the amount of our assessed exports. It grants government no discretion of policy. Assessing the U.S. dollars values of goods at U.S. ports is a technical rather than a policy determination.
Unlike tariffs, regardless of how small of additions to import prices of goods sold to U.S. purchasers, our imports could never exceed the values of our assessed exports.
Unlike tariffs or pure free trade, the Import Certificates serve as an indirect but effective subsidy of U.S. exported goods.
Free trade lets us pay less for everything we use and get more for everything we produce. 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.
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