Comparative advantage.
... Do you even know what comparative advantage is?
There are no absolute or competitive advantages to USA enterprises for outsourcing goods or service products provided at less cost and/or reducing their labor expenses if their competitors act in similar fashions; but proponents of free enterprise agree within a nation these fluid market determinations are in the aggregate best interests the nation's enterprises and society. Regarding a national policy of pure free global trade there is less of concurrence among these proponents.
If a nation’s global trade balance is a surplus, that balance contributes to their nation’s numbers of jobs and median wage which are reflected by a GDP that’s greater than otherwise.
[Google “wikipedia balance of trade”, refer to paragraphs entitled “Trade balances’ affects upon GDPs”].
When a nation suffers annual trade deficits, to the extent that nation no less effectively utilizes and compensate labor (despite the trade deficit’s immediate detriment to the nation’s numbers of jobs and median wage’s purchasing powers), the detriment to the GDP is mitigated.
To the extent that importing production supporting products contribute to a nations’ net balance of trade, it also affect their GDPs.
USA’s overwhelming portion of imported goods are for consumers rather than for production support Our formal and informal class rooms and on job trainings have not produced knowledge, skills and craftsmanship that significantly reduces or overcomes our trade deficit’s detriment to numbers of jobs; unfortunately we have not made such achievements to significantly mitigate our trade deficit’s detriments to our GDP.
When the U.S. Congress voted to enact more altruistic foreign relationships and trade policies, the Marshall Plan was funded from our federal budget and paid for by ALL USA taxpayers. Our trade deficit’s economic net burden to our GDP is almost entirely carried by only salary and wage earners.
I’m among the proponents of the specific Import Certificate’s, (IC’s) trade policy that would eliminate our global trade deficit of assessed goods values. I’m a proponent of IC’s because it is to our COMPARATIVE ADVANTAGE.
Funding of the proposal’s entire direct net costs would be paid by increased prices to USA’s final purchasers and users of such imported goods. These costs are not a net source of federal revenue but an effective indirect subsidy of USA’s exported goods.
[Google “wikipedia import certificate”].
Respectfully, Supposn
