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Thread: why even keep track of trade deficits?

  1. #1
    Join Date
    Sep 2012

    why even keep track of trade deficits?

    free trade is simple

    if both parties dont feel that it is a deal, they dont trade x for y


  2. #2
    Join Date
    Aug 2010

    Trade deficits always detrimental their nations' GDPs and median wages.

    Endthefed, comparative advantage refers to determination among choices. We want to choose what’s most advantageous to ourselves but there are occasions when none of the choices are advantageous and our alternative is to choose what’s the least disadvantage to ourselves; (i.e. “comparative advantage” is a term that simply refers to the considerations of available alternative options).

    Under USA’s policy of “pure” free trade, it’s certainly to individual enterprises and persons comparative advantage to purchase cheaper imported goods. What’s to individual’s advantage is not necessarily to our national advantage.

    Competitive advantage is one’s advantage over their competitors. Free trade does not grant enterprises any competitive advantages but if they fail to avail themselves of cheaper foreign products (under that policy) it certainly puts them at a disadvantage to their competitors within USA’s domestic markets.

    Aggregate wage and salary earning families’ benefit from cheaper foreign goods but that does not compensate for USA’s annual trade deficits of goods detrimental effect upon USA’s annual GDP and median wage. Due to USA’s annual trade deficits, USA had less jobs and our employees earned less wages than otherwise. (Otherwise being no annual trade deficit).

    I’m among the proponents for a trade policy proposal based upon Import Certificates. It is not “pure” free trade but it is absolutely pure free competitive enterprise. It grants government no policy discretion. Assessing the value of goods in U.S. dollars within the USA is a technical rather than a policy determination. We can continue to benefit from cheaper foreign goods but not the absolutely cheapest priced goods. We cannot afford the absolute cheapest prices.

    Refer to
    or google “ wikipedia, import certificate “.

    Respectfully, Supposn

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