Quote:
Originally Posted by Sarn
What about US, comrade? What will do with Trade Deficit and american workers? Trump want money 
What is 'Trade Deficit'
Trade deficit is an economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.
BREAKING DOWN 'Trade Deficit'
Economic theory dictates that a trade deficit is not necessarily a bad situation because it often corrects itself over time. However, a deficit has been reported and growing in the United States for the past few decades, which has some economists worried. This means that large amounts of the U.S. dollar are being held by foreign nations, which may decide to sell at any time. A large increase in dollar sales can drive the value of the currency down, making it more costly to purchase imports.
Read more: Trade Deficit Trade Deficit |
this is a too easy explaination about trade deficit.
things are much more complicated in the international markets.
next to that the deficit in USA is calculated wrong since trump.
example:
a US company is importing for 10 million dollars goods from outside. 5 million of that goods are going directly to another company in canada (because they bought together to receive a cheaper price). in that case the trump administration calculates the complete 10 million
as imports but the 5 million are not valid exports and donīt get cuttet from the 10 million.
that means that this calculation is WRONG!.
but that the US have a trade deficit is based on this facts:
1. us-goods what are bought by a mass of people in the world are not competible
2. exception of 1. are weapons but as the world is not such a crazy place that there are many countries what allow weapons to civil person means: it is not a mass product.
3. the possibilities for companies to reduce taxes - here are a few examples for that:
a. an american oil trade company opens a company in an offshore country. this company funds a company in DELAWARE.
this company is now trading US-OIL to other countries - the profit they make in delaware are TAX FREE !!!!
b. apple is importing 90% of their parts from offshore to US.
in US they only make last works and sell the phone to APPLE i.e. Singapoure for
just a fraction of the real price - letīs say 100 US reduced by the labour in US and the
cost for the imported parts the compnay makes a profit of 5 dollar in US and pay
tax on this 5 dollar.
in singapore this phone is sold for 500 US - apple singapore have a profit of
400 US and pays the low tax in Singapore.
As they do not have to pay tax on this profit as long as this money does not enter
US the money is kept outside - it can never enter the US market and never produce
prosperity there.
so here is the first BIGGLY mistake in trumps thinking!
He wants to lower the tax for american companies - waht means that apple will pay less tax on the 5 dollars profit in the country and they still will not bring back profits from outside - exept this profits will not be taxed in USA.
but now i ask you: how can someone blame tax oasis offshore and allowing a tax oasis in the own country (btw. there are a few thousand of companies in delaware what are part of the trump empire).
and now i ask you another question: if you would be the owner of an empire what is using all this tax tricks - would you stop it? or would you tell the brainwashed that america is gerat again when the company taxes (the 5 dollar profit from apple) is taxed lower?
see? and this is EXACTLY what he is doing. he does not resolve the problem he makes it even bigger.
the ONLY way to get out of that problem is a completely other tax system.
and yes - it have to be a lower tax for profits what have not been made in US - but there have to be a way to control that somehow.
so the trade problem in US is not made from the gloabl market. it is made from the big companies what can influence corrupt politicians. and trump is not only a corrupt politician - he is also one who OWNES such companies what are influencing it.
the mass of americans (and not only americans) do not understand enough from economy to see this facts. they need easy answers and that makes them vulnerable.