Trade deficits are ALWAYS detrimental to their nations’ GDPs.
Correspondence between GenSeneca and Supposn:
Originally Posted by Supposn:
GenSeneca, trade deficits are deducted from a nation’s expenditures for goods and services not because (as you suggested), to prevent their being counted twice.
Originally Posted by GenSeneca:
That is not what I said and it wasn't "my" suggestion. According to the formula for calculating Gross Domestic Product, imports add to the terms of CGI and therefore must be subtracted to prevent foreign goods from being counted as domestically produced goods.
Originally Posted by Supposn:
They're deducted to entirely prevent them from being counted.
That's correct but that was not what you have been saying. You've been claiming that imports are subtracted because, and I quote:
"USA’s trade deficit denied our nation the production of the products we imported. That’s why trade deficits are negative terms within GDP calculations." - Supposn
Originally Posted by GenSeneca:
So now you're going from being incorrect about the formulation of GDP, to being dishonest about the formulation of GDP, to flat out lying about what you're on record as having said about the formulation of GDP.
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GenSeneca, trade deficits are deducted from U.S. purchases of products in order to prevent the purchase foreign products’ purchases from being included among U.S. purchases of domestic products.
They’re ALSO deducted because the choice to purchase foreign goods denied the nation of the benefits that would have been derived from purchasing domestic goods.
You do not accept the concept that what’s to the immediate advantage of individual purchasers can be immediately and over the long term detrimental to the nation’s aggregate economy.
You can’t handle the truth.
Respectfully, Supposn
