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Neither Trump nor Sanders will remedy USA’s global trade deficits.
Trump & Sanders at least acknowledge USA’s chronic trade deficits extents of harm to USA’s economy; no candidates dare propose explicit answers.
All nations, enterprises and people behave in what they perceive to be their there own best interests.
Trump and Sanders believe that can be changed by negotiation, rather than changing USA’s trade policy so their best interests coincide with USA’s best economic interests.
Currently USA’s policies encourage enterprises to produce and/or import from other nations.
Both candidates believe we can negotiate for entities to behave against their best interests rather than changing USA’s trade policy. Both believe we can negotiate better and trump additionally believes he above all others is the master of “deal”.
They’re both wrong.
Refer to the paragraphs entitled “Trade balances affects upon their nations economies” within Wikipedia’s article entitled “Trade balances”
and/or
the Wikipedia article entitled “Import Certificates”.
Conventional economics holds free trade as an undisputed axiom. I keep pointing out that the originators of the free trade ideas were 2 Scottsmen, Adam Smith and David Hume and it was Hume who explained how the exchange of gold would keep trade in balance (see "price-specie flow mechanism").
Nixon abolished the exhange of dollars into gold by foreign central banks in 1971. This set the stage for huge and continuous trade deficits. The "Bretton Woods" agreement of 1944 made the US dollar equivalent to gold by allowing dollar reserves to be used instead of gold. This is why we are able to run huge trade deficits- the dollars that we print up are instantly valued by the rest of the world. One day, the world will say enough dollars and our currency will collapse but not before foreigners buy up huge swaths of US real assets with their trade surplus dollars.
Sanders is an unapologetic ultra liberal who claims to be a socialist. He never mentions industrial policy (a hallmark of socialism), which is needed to restart industries that we have lost.
Trump knows what the problem is but has no idea how to go about fixing it and as the OP says, countries that have huge trade surpluses with the USA are not going to voluntarily give up their advantages.
Neither Trump nor Sanders will remedy USA’s global trade deficits.
Trump & Sanders at least acknowledge USA’s chronic trade deficits extents of harm to USA’s economy; no candidates dare propose explicit answers.
All nations, enterprises and people behave in what they perceive to be their there own best interests.
Trump and Sanders believe that can be changed by negotiation, rather than changing USA’s trade policy so their best interests coincide with USA’s best economic interests.
Currently USA’s policies encourage enterprises to produce and/or import from other nations.
Both candidates believe we can negotiate for entities to behave against their best interests rather than changing USA’s trade policy. Both believe we can negotiate better and trump additionally believes he above all others is the master of “deal”.
They’re both wrong.
Refer to the paragraphs entitled “Trade balances affects upon their nations economies” within Wikipedia’s article entitled “Trade balances”
and/or
the Wikipedia article entitled “Import Certificates”.
I find it funny... there are certainly things that are impossible... THIS is not one of them... there are 300+ million of Americans, I am sure somebody here will have an intelligent answer... it depends on how hard you look.... not trying is the first step to failure... that is Hillary Clinton... at least the other two candidates propose to look for the answer... THAT is the path to success...
I find it funny... there are certainly things that are impossible... THIS is not one of them... there are 300+ million of Americans, I am sure somebody here will have an intelligent answer... it depends on how hard you look.... not trying is the first step to failure... that is Hillary Clinton... at least the other two candidates propose to look for the answer... THAT is the path to success...
Wells5, no; socialism is not necessary or preferable for restarting industries that we have lost.
An Import Certificate policy is much more market than government driven. If restarting or boosting any particular USA industry would be to our nation’s economic advantage, the Import Certificate program would cause that due to normal market pressures.
All nations, enterprises and people behave in what they perceive to be their there own best interests. Changing USA’s trade policy so others’ best interests coincide with USA’s best economic interests is the preferable method to improve our trade policy.
Conventional economics holds free trade as an undisputed axiom. I keep pointing out that the originators of the free trade ideas were 2 Scottsmen, Adam Smith and David Hume and it was Hume who explained how the exchange of gold would keep trade in balance (see "price-specie flow mechanism").
Nixon abolished the exhange of dollars into gold by foreign central banks in 1971. This set the stage for huge and continuous trade deficits. The "Bretton Woods" agreement of 1944 made the US dollar equivalent to gold by allowing dollar reserves to be used instead of gold. This is why we are able to run huge trade deficits- the dollars that we print up are instantly valued by the rest of the world. One day, the world will say enough dollars and our currency will collapse but not before foreigners buy up huge swaths of US real assets with their trade surplus dollars.
Sanders is an unapologetic ultra liberal who claims to be a socialist. He never mentions industrial policy (a hallmark of socialism), which is needed to restart industries that we have lost.
Trump knows what the problem is but has no idea how to go about fixing it and as the OP says, countries that have huge trade surpluses with the USA are not going to voluntarily give up their advantages.
Apparently the entire herd of harvard trained economists are also at a loss unless they know and for some reason are keeping silent. Maybe they are testing an academic theory for their next book.
.........Refer to the paragraphs entitled “Trade balances affects upon their nations economies” within Wikipedia’s article entitled “Trade balances”
and/or the Wikipedia article entitled “Import Certificates”...........
Is this our homework assignment for the week, boss?
Trade agreements should be between private companies and whoever they choose to business with. No federal trade policy is needed!
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