Comparing Trump's tariffs, pure free trade, and Import Certificates trade policies.
Foreign trade per se, is of no harm but rather of some benefit to participating nations. However the same is not true if the nation experiences annual negative net balances of foreign trade, (i.e.annual trade deficits).
Dueto USA's annual negative balances of international trade, we've lost entire segments of some industries. USA's wage dependent families have and will continue to be net detrimentally affected by our annualtrade deficits.
Although both USA tariffs and the proposed USA income certificate, (IC)policy would effectively increase prices paid by USA purchasers of foreign goods, the more market rather than government driven IC policy is preferable to the policies of tariffs, and to free trade, for a nation that otherwise experiences annual trade deficits.
Within an IC policy, any increase of foreign goods prices beyond reflecting federal fees that exporters of USA goods choose, (they are not required to pay and acquire the transferable single use certificates based upon the value of their goods exported from theUSA), is an indirect, but effective price subsidy of USA's exported goods. Those federal IC fees should not exceed our governments net administrative expenses due to the trade policy; But unlike tariffs,IC policy would certainly almost, if not entirely eliminate USA's chronic annual trade deficits while increasing our GDP more than otherwise.
Refer to Wikipedia's “Import Certificates” article, link: https://en.wikipedia.org/wiki/Import_certificates
Respectfully,Supposn
Foreign trade per se, is of no harm but rather of some benefit to participating nations. However the same is not true if the nation experiences annual negative net balances of foreign trade, (i.e.annual trade deficits).
Dueto USA's annual negative balances of international trade, we've lost entire segments of some industries. USA's wage dependent families have and will continue to be net detrimentally affected by our annualtrade deficits.
Although both USA tariffs and the proposed USA income certificate, (IC)policy would effectively increase prices paid by USA purchasers of foreign goods, the more market rather than government driven IC policy is preferable to the policies of tariffs, and to free trade, for a nation that otherwise experiences annual trade deficits.
Within an IC policy, any increase of foreign goods prices beyond reflecting federal fees that exporters of USA goods choose, (they are not required to pay and acquire the transferable single use certificates based upon the value of their goods exported from theUSA), is an indirect, but effective price subsidy of USA's exported goods. Those federal IC fees should not exceed our governments net administrative expenses due to the trade policy; But unlike tariffs,IC policy would certainly almost, if not entirely eliminate USA's chronic annual trade deficits while increasing our GDP more than otherwise.
Refer to Wikipedia's “Import Certificates” article, link: https://en.wikipedia.org/wiki/Import_certificates
Respectfully,Supposn
