Originally Posted by Supposn:
GenSeneca, I state trade deficits are ALWAYS detrimental to their nation’s GDPs more than otherwise. You offer statistical “proof” that the contention is false. You object to my assumption that your confusing causes and effects within your use of the statistics but you have not clarified the reason for your objections. Your statistics may be empirical but your conclusions based upon those statistics are opinions rather than facts.
I base the statement “trade deficits are ALWAYS detrimental to their nation’s GDPs more than otherwise” upon the definition of GDP and the generally accepted calculation methods of the world’s communities of economists and statisticians.
If in your opinion a definition is not a fact, I recognize the merits of that opinion; but I don’t understand how any meaningful dialogue can occur without agreeing upon definitions of the terms being used. We otherwise do not understand each others languages.
The definition of GDP and the accepted formulas for calculating the GDP contain no terms that would even infer the production of a nation’s import products can contribute anything to the nation’s GDP.
[To the extent that the imported goods are produced with foreign goods and services, they are completely foreign products.]
The same definition and formulas explicitly confirm the production of a nation’s exports fully contribute to the nation’s GDP. That’s all mathematical proof.
I cannot, and I’m unaware of anyone that can mathematically calculate nations’ trade imbalances understated affect upon their GDPs. Due to any production not reflected within the prices of a nation’s globally traded products, nations’ global trade imbalances are understated. Message # 16 logically explains why and how those understatements occur.
The definition of GDP and the accepted formulas for calculating the GDP contain no terms that would even infer the production of a nation’s import products can contribute anything to the nation’s GDP.
If you reject that as a positive mathematical proof, do you additionally contend trade deficits do make a net contribution to their nations GDPs or have you not formulated an opinion upon this matter?
The same GDP definition and formulas explicitly increase nations’ GDPs by the amount of their exports. You don’t reject that positive conclusion?
I have offered a logical argument for the belief that to the extent of productions not reflected within the prices of a nation’s global trade products cannot be identified and attributed to the nation’s global trade, the affects of the nation’s trade imbalances upon their GDPs are generally understated. You contend otherwise?
What do you contend, what logical arguments do you offer to support your contentions and can you mathematically prove and quantify all of your contentions?
Respectfully, supposn
