This proposal's market rather than government driven.
Dr. who, all expenses are eventually passed onto those who are the ultimate cause of our trade deficit, (i.e. the U.S. purchaser of foreign goods).
This is a market driven proposal.
If U.S. purchasers’ effective demand, (willingness to spend and ability to receive shipments of and pay the going price) for foreign goods is greater than foreign purchasers’ effective demand for U.S. goods, the global open market price for Import Certificates, (ICs) sold by exporters of U.S. goods will be greater and the prices of import5s sold to U.S. purchasers will be greater.
The U.S. goods exporters’ additional revenue from the ICs are indirect but effective subsidies for U.S. exports, inducing lesser prices for U.S. goods sold to foreign purchasers.
If there’s lesser U.S. purchaser’s effective demand for foreign goods or greater foreign purchasers’ effective demand for U.S. goods, the additional prices of foreign goods sold to U.S. purchasers and the indirect subsidy of U.S. exports sold to foreign purchasers are less.
This all occurs with absolutely no federal IC market regulations or actions; that’s how the supply and demand for ICs will affect everything else. The supply of ICs, (unlike other commodities) can be quickly increased when driven by increased IC prices and that market CANNOT be “cornered”.
Respectfully, Supposn
