- Oct 12, 2009
- Reaction score
- North Dakota
- Political Leaning
DRZ-400, annual trade deficits are ALWAYS a drag upon their nation’s production, (i.e. their GDP).
Consequentially that drags upon their numbers of jobs and their wage rates, which employees are dependent upon.
USA’s economy is highly sensitive to the purchasing powers of employees and additionally to their immediate dependents and the many commercial and other entities that are in aggregate among, if not the greatest drivers of our economy.
We all benefit from cheaper imported goods but that doesn’t compensate for trade deficits’ net detriment to our nation’s economy.
We cannot expect every person and enterprise to behave altruistically but we can draft our trade policy laws for our aggregate individuals and enterprises immediate and longer-term best interests converge with that of our entire nation’s economy.
It does not take GDP down. GDP = Income = Total Expenditure. You can't buy stuff without first having the money. All your proposal would do is lower the purchasing power of our income by driving prices up.