Trade deficits are ALWAYS detrimental to their nations’ GDPs.
GenSeneca, your statement: “Imports are not produced domestically and therefore should not be counted in Gross Domestic Product.
Imports add a positive value to the terms of G, I, and/or C.
To give an accurate account of Gross Domestic Product, the Import value must be zero’s out.
Imports are therefore represented as a negative integer (- M) to zero out the positive value they add in G, I, and/or C”
is correct as it stands.
Imports entering the nation are no more or less economically beneficial than similar products arriving at one of the nation’s producers’ shipping platform. Their entire economic differences occur prior to those points. Unlike domestically produced products, to the extent that products were foreign produced, their production contributed nothing to importing nations’ GDPs.
The GDP only reports upon what was the nation’s production. Due to spending for the purchase of foreign products, the nation denied itself the net benefits derived from domestic production and the importing nations’ GDPs were less than otherwise. That’s trade deficits’ major detriments to their nations’ GDPs.
To the extent that supporting productions are not entirely reflected within the prices of imported products, imports prices were understated. The nation additionally denied itself of net benefits derived from domestic production and the importing nations’ GDPs were further decreased more than otherwise.
[Although all production contributes to the producing nations’ GDPs, production that is not reflected within the prices of global trade products cannot be identified and attributed to global trade].
To the extent that the production of imports supported or induced other production that is not reflected within the prices of the nations’ imports, the nation denied itself of further additional net benefits derived from domestic production and the importing nations’ GDPs were further decreased more than otherwise.
Trade deficits are ALWAYS detrimental to their nations’ GDPs and those detriments’ are generally understated.
Respectfully, Supposn
