Re: Trade deficits are always detrimental to their nations’ GDPs.
The plan is to limit imports based on the dollar amount of exports. So if we export $15 billion worth of products, $15 billion worth of IC's would be created, and foreign countries would be limited to a maximum amount of $15 billion worth of imports to the US. The idea being that limiting domestic imports to a dollar amount equal to the dollar amount of our exports will result in a statistical balance of trade.
But you just claimed IC's wouldn't restrict the volume (i.e. quantity) of US imports... If the quantity of current US imports equals $25 billion and IC's restrict importers to $15 billion worth of imports, then imports actually would be limited in the "volume" of imports because they could not exceed $15 billion worth of goods, leaving $10 billion worth of goods unable to enter America.
Again, as I read the plan, IC's are created by the US exporting goods. So when I export $1 worth of goods, I get an IC worth $1 worth of imports, which I then sell to the highest bidder who uses that IC to import $1 worth of goods to the US.
If that is not how the plan is supposed to work, then it makes even less sense than I thought.
Not by making the US more competitive with the rest of the world, only by rigging the system to make sure the value of our imports do not exceed the value of our exports.
You keep making this claim but you do not explain how A leads to B leads to C.
The plan will increase the cost of goods sold in America. That forces Americans to spend more money in 2012 to purchase the exact same goods they purchased in 2011, doesn't sound like a plan that creates jobs or increases the median wage. This plan would have the same effect as inflation, a dollar in 2012 would have less purchasing power than it did in 2011, making every American that much poorer. So explain how a plan that increases the cost of goods in America will create jobs and increases the median wage.
You say the same thing every time...
Supposn, "This plan will reduce the trade deficit, which will raise GDP, create jobs, and increase the median wage."
GenSeneca, "Explain how A leads to B leads to C leads to D."
Supposn, "This plan will reduce the trade deficit, which will raise GDP, create jobs, and increase the median wage."
GenSeneca, "That doesn't explain anything."
Supposn, "I've already explained it. This plan will reduce the trade deficit, which will raise GDP, create jobs, and increase the median wage."
