Foreign producers lesser direct and indirect costs of such resources as labor are to their advantage. Their lower production costs enable importing cheaper priced and/or superior quality products.
What‘s to the best interests of individual entities within a nation may not be similarly to the nation’s best interest. This may hold true regardless of those entities importance or numbers. Knowledge, historic experience and logic have led us to recognize some specific circumstances and/or individual behaviors that are generally or consistently detrimental to the community.
Nations must often wrestle with the contrary interests of their seperate entities as opposed to the entire community; (i.e. the rights of individuals as opposed to national interest). We have justifiably established some laws regulating behavior or agreements that are deemed to be contrary to the public interest.
A nation’s trade deficit is both a cause and an indication that their gross domestic product, (their GDP) is less than otherwise. Anything detrimental to the GDP is detrimental to the median wage. The GDP and median wage are the two most significant statistical indicators of the nation’s medium and long term economic welfare. (Refer to the discussion entitled “USA’s trade deficit harmd our nation�?.
Warren Buffett wrote of a proposal to significantly decrease USA’s trade deficit. It’s market rather than government driven. It grants government no discretion of policy. It’s self funding, not a tax and would increase the aggregate sum of USA’s imports and exports of goods. Buffett’s proposal is not completely unrestricted free trade but it certainly is pure free enterprise.
I’m aware of no existing or other proposed trade policy that could accomplish this with less government intervention or increased prices of imported goods. USA’s acceptance of Buffett’s trade proposal is justified.
Refer to
www.USA-Imports.Blogspot.com Respectfully, Supposn