Reduce the trade deficit; increase GDP & median wage


Well-Known Member
Sep 2, 2009
Warren Buffett’s concept to significantly reduce USA’s trade deficit.
It is not our global trade but our trade deficits’ that are a significant net detriment to our economy. Trade deficits’ amount of detriment to their nations’ GDPs are significantly larger than the deficits themselves.

I’m a proponent of a proposal to reduce USA’s trade deficit of goods that was first introduced to the Senate in 2006. This simple concept is not simplistic and is worthy of consideration.

The basic concept is for exporters who choose to pay the federal fees to acquire transferable IMPORT Certificates for the assessed value of their goods leaving the USA. Importers would be required to surrender IMPORT Certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled.
This may seem as a boon to exporters of USA goods but it’s actually an indirect but effective export subsidy and the trade proposal’s entirely funded by U.S. purchasers of foreign goods.

The version of this trade policy I advocate would exclude values of specifically listed scarce or precious minerals integral to goods from goods assessed values.
This trade policy would significantly decrease USA’s trade deficit of goods and increase the aggregate sum of USA’s imports plus exports and our GDP more than otherwise. The GDP bolsters the median wage.

Wage earning families benefit from cheaper imported goods but every day of every year they’re dependent upon their U.S. wages. Regardless of how small the additions to imports’ prices due to Import Certificates, (unlike tariffs) USA’s assessed imports could never exceed that of our exports. U.S. wage earners can have cheap (but not the absolute cheapest) imported goods. We cannot afford the absolute cheapest.

Refer to the topic “Trade deficits are always detrimental to their nations’ GDPs”, ,
or Google: Wikipedia, import certificates

Respectfully, Supposn