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

[John Galt]

[John Galt]

[Supposn]

John Galt, I googled trade deficits effect on GDP. Here’s the beginning of 1,180,000 sources that differ as to this question.
This is not a question that will be statistically resolved. I don't believe that polling opinions determines validity. Despite what you believe, economics is among the social studies, rather than an applied science.

Even when we believe we can reasonably predict how people will generally behave, we're often bewildered. We can speculate upon Trump's political achievements but you or I would not have predicted them. Economists try to reason as to what people, their enterprises and their governments have done and are likely to do in the future. That's not a science.

As most of us do, I generally pretend that I'm being rational; it just ain't necessarily so.


Respectfully, Supposn


About 1,180,000 results
What impact does the balance of trade have on GDP calculations ...
http://www.investopedia.com/.../what-im ... -have-gdp- calculations.asp‎
GDP increases when the total value of goods and services that domestic ... domestic producers sell to foreign consumers – a trade deficit – then GDP decreases.
In Praise Of Trade Deficits | Investopedia
http://www.investopedia.com/articles/ec ... ffects.asp‎
In this article we will examine the correlation between trade deficits and GDP to ... theories that have surfaced regarding the effects of a trade deficit on GDP:.
Balance of trade - Wikipedia, the free encyclopedia
https://en.wikipedia.org/wiki/Balance_of_trade‎
To some extent, exports induce additional increases to GDP that ... Trade deficits make no net contribution to their nations' GDPs ...
International Finance: Trade Deficits: Bad or Good? - Infoplease
http://www.infoplease.com/cig/economics ... -good.html‎
So, given the size of the U.S. economy and the benefits of foreign investment in the United States, the effect of trade deficits on GDP is minimal. This is ...
The Impact of Foreign Trade on the Economy - The New York Times
economix.blogs.nytimes.com/.../the-impact-of-foreign-trade-on-the-economy /‎
Dec 10, 2008 ... Higher exports and lower imports add to G.D.P., while reduced exports and ... If our trade deficit increases at a time when consumer spending is ...
Trade balance: a key concept in Economics
http://www.economicswebinstitute.org/gl ... alance.htm‎
A faster GDP growth than trade partners' ones usually results in trade deficit, since ... of GDP: other things equal, a surplus increases GDP and deficit reduce

[IndependentProfessor]

[Supposn]

John Galt, I googled “trade deficit effect on GDP”. That evoked a 19 page list of website links. The first links I found that is of some interest to us were Investepedia links. I read and logically argued against their conclusions. (I think I’ve already done so within this thread).

The second link that may be of interest to us:
http://economix.blogs.nytimes.com/2008/ ... e-economy/
is more supportive to my opinions.

The Third link that may be of interest to us:
http://www.infoplease.com/cig/economics ... -good.html
states, “Most mainstream economists believe that because the current account deficit is offset by foreign investment in the United States, the [trade deficit’s] effect on GDP is negligible".


This is the point we’re debating.
Trade deficit’s detriment to the GDP that “most main stream economists believe to be negligible” is particularly detrimental to our numbers of jobs and our wage levels. Almost the entire “negligible” net loss of GDP due to the trade deficit are due to losses of employees and their dependents purchasing powers; (i.e. due to lesser jobs and lesser wage rates). The benefits of cheaper foreign goods do not compensate for the lesser numbers of jobs and wages.

It is not our trade deficits that induce wealth to be invested and re-invested for the benefit of our economy. When our economy behaves in a superior manner, it attracts both USA and foreign investment; when it’s less robust, there’s less investment.

I also question as to how small is “negligible”. The items of trade balances’ ripple effects upon the GDP cannot be identified and attributed to the nation’s global trade. Thus those economists that agree trade surpluses contribute and trade deficits drag upon their nation’s GDP are understated, they cannot determine the extent of those understatements; (i.e. the extent of trade balance’s “ripple effect” upon the GDP).
They can only be certain that the net balance of the nation’s annual trade balance is the minimum effect of global trade upon the annual GDP. That’s why I question how small is the “negligible” losses of GDP due to annual trade deficits?

Respectfully, Supposn

[Supposn]

[IndependentProfessor]

Did you just quote yourself?

[IndependentProfessor]

[Supposn]

[Philly]

Just get off the guys back and let the discussion go forward. Who cares if he helps curate Wikipedia pages on issues he cares about? And you wonder why new posters never last.