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Trade deficits are ALWAYS detrimental to their nations’ GDPs.

Posted: Sun Jan 22, 2012 5:04 pm
by Supposn
Trade deficits are ALWAYS detrimental to their nations’ GDPs.

Nations’ entire production of goods and service products contribute to their GDPs but prices of individual products do not always reflect the entire goods and services that supported the production of those products.
Also individual product prices certainly do not reflect their productions’ inducement of additional goods or services productions.

All production contributes to producing nations’ gross domestic product, (GDP). The production is not statistically lost; but to the extent that production costs of globally traded goods are understated, nations’ global trade imbalances’ affects upon their GDPs are not fully attributed to global trade.

For example governments often induce producers to establish their factories within their jurisdictions by granting them favorable tax considerations or providing infrastructure that’s particularly favorable to targeted enterprises. Governments and other non–profits often co-operate by favoring enterprises with research, loans of equipment, or access to their expertise. These production supports are of lesser or no cost to the favored enterprises and thus those enterprises products are lesser priced.

All of a nation’s production, (including production support that’s not reflected within produced products prices), are included within the producing nations’ GDPs.

But domestic production support not included within the supported export products are not to that extent attributed as exports’ contributions to the producing nation’s GDP.

Production of products can support or induce the production of other unrelated products.
For example increasing the production rate of export goods can increase the factory’s payroll and induce increasing revenues for local beauty parlor service products.
This is an additional example of exports additionally increasing the nation’s GDP but the addition is not attributed to the nation’s global trade.

[We cannot spend the same money twice. That’s why the GDP calculation formulas are reduced by the amount of the nation’s imports.
When U.S. purchasers perceiving their own individual benefits chose to purchase imported products their transaction reduces their nations’ GDPs. Trade surpluses increase their nations’ GDPs.]

Trade surpluses ALWAYS contribute and trade deficits are ALWAYS detrimental to their nations’ GDPs.
This is baked into the formula defining and calculating GDP; it is not matters of opinion.

Respectfully, Supposn

RE: Trade deficits are ALWAYS detrimental to their nations’ GDPs.

Posted: Thu Feb 23, 2012 12:26 am
by Supposn
Wolf Larson, I’m supposing that I failed to check the notify (me) immediately of any response box. I apologize for this late response.

I have complete confidence in a unilateral trade policy.
I’m opposed to USA’s tolerating fewer jobs at lesser wages because what you describe as China’s superior economy. USA wage earning families should not bear the cost of China’s inability or unwillingness to provide their work force with adequate wages and more humane environments.

Wage earning families share our benefits due to cheaper goods but they’re dependent upon their USA wages every day of each year. The trade proposal I advocate can provide cheap, but not the absolute cheapest possible foreign goods. We can’t afford the absolute cheapest prices.

Refer to the topic “Buffett’s concept” an economic stimulus at no expense”
or to “
or Google wikipedia, import certificates

Respectfully, Supposn

RE: Trade deficits are ALWAYS detrimental to their nations’ GDPs.

Posted: Tue Sep 03, 2013 5:17 am
by Supposn
Google “ wikipedia, balance of trade “
then refer to the paragraphs
entitled “Trade balances’ affects up on their nation’s GDP”.

Respectfully, Supposn