Political Crossfire Forums

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

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

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

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