Reduce the trade deficit; increase GDP, jobs and median wage

[exploited]

[Supposn]

Independent Professor, my post of April 21, 2016 was in response to this excerpt from your link,
(CATO’s trade policy analysis # 45):
http://www.cato.org/publications/trade- ... rag-growth
(CATO’s trade policy analysis # 45):
“The consensus creed is based on a misunderstanding of how U.S. gross domestic product is calculated. Imports are not a “subtraction” from GDP. They are merely removed from the final calculation of GDP because they are not a part of domestic production”.

As my post explained, trade balance contributes to their nation’s GDP. When their trade balance is negative, (i.e. when it’s a trade deficit) it reduces the nation’s GDP.
CATO and my post are in agreement of the facts but how does CATO logically conclude “Imports are not a “subtraction” from GDP? USA’s GDP would not be greater if our annual balances of trade were not trade deficits?

Respectfully, Supposn

[Supposn]

Independent Professor, my post of April 21, 2016 was in response to this excerpt from your link,
(CATO’s trade policy analysis # 45):
http://www.cato.org/publications/trade- ... rag-growth
(CATO’s trade policy analysis # 45):
“The consensus creed is based on a misunderstanding of how U.S. gross domestic product is calculated. Imports are not a “subtraction” from GDP. They are merely removed from the final calculation of GDP because they are not a part of domestic production”.

As my post explained, trade balance contributes to their nation’s GDP. When their trade balance is negative, (i.e. when it’s a trade deficit) it reduces the nation’s GDP.
CATO and my post are in agreement of the facts but how does CATO logically conclude “Imports are not a “subtraction” from GDP? USA’s GDP would not be greater if our annual balances of trade were not trade deficits?

Respectfully, Supposn

[IndependentProfessor]

[IndependentProfessor]

Wait - also, you and Fortune disagree. Now it's 2-1. The picture is getting clearer on with whom I should side.

[Philly]

As a general rule of thumb, believe the guy who disagrees with CATO.

[Supposn]

[IndependentProfessor]

[IndependentProfessor]

[Philly]