I’m a proponent of USA adopting the substantially globally market driven trade policy as described in the Wikipedia article “Import Certificates” in order to better support USA’s gross domestic product, numbers of jobs and those jobs’ purchasing powers. This proposal would almost entirely or entirely eliminate USA’s trade deficits of goods.
The policy would not be detrimental to our nation’s GDP and would highly likely contribute to its increase. Trade surpluses contribute and trade deficits are "drags" upon their nation's GDP.
I’m in agreement with these comments excepted from Krugman’s NY Times opinion.
/////////////////////////////////http://www.nytimes.com/2016/07/04/opini ... .html?_r=0
Donald Trump gave a speech on economic policy last week. Just about every factual assertion he made was wrong, but I’m not going to do a line-by-line critique. What I want to do, instead, is talk about the general thrust: the candidate’s claim to be on the side of American workers. …
…About globalization: There’s no question that rising imports, especially from China, have reduced the number of manufacturing jobs in America. One widely-cited paper estimates that China’s rise reduced U.S. manufacturing employment by around one million between 1999 and 2011. My own back-of-the-envelope calculation suggests that completely eliminating the U.S. trade deficit in manufactured goods would add about two million manufacturing jobs.
But America is a big place, and total employment exceeds 140 million. Shifting two million workers back into manufacturing would raise that sector’s share of employment back from around 10 percent to around 11.5 percent. To get some perspective: in 1979, on the eve of the great surge in inequality, manufacturing accounted for more than 20 percent of employment. In the 1960s it was more than 25 percent. I’m not sure when, exactly, Mr. Trump thinks America was great, but Trumponomics wouldn’t come close to bringing the old days back.
In any case, falling manufacturing employment is only one factor in the decline of the middle class. As Mr. Mishel says, there have been “many other intentional policies” driving wages down even as top incomes soar: union-bashing, the failure to raise the minimum wage with inflation, austerity, financial deregulation, the tax-cut obsession.
And Mr. Trump buys fully into the ideology that has driven these wage-destroying policies.