Quote:
Originally Posted by Paul Markham
Balanced trade means you sell $100, you buy $100. You employ one man in the home country, you employ one man in another country. It is that simple.
At the moment the US isn't doing that, it's selling $90 and buying $110 dollars. This immediately hits your tax funds because you haven't paid enough in wages to raise enough in taxes. So debt increases.
The upside is it puts more money into the pockets of the1% who avoid paying taxes far more than the less wealthy. So with governments owned by big corporations, it continues to get worse.
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you are such a strange calculator especially when it comes up to world economy.
you are right in one thing: when the TOTAL of exports is lower than the total imports there is something wrong. but that is not a lack in the import prices - this prices help for 2 things
a. prosperity of the citizens because they can buy more for the same money
b. 90% of the exports are IMPOSSIBLE without cheap imports.
how much do you think would a comuter or a phone cost if all parts of it are made in USA ?
do you really think that USA could export even ONE PIECE ????
what is wrong here is much more complex as you see it.
the problem is on issues what are far away from the visible. I will tell you ust a few examples:
1. USA went so fast out of the crisis because it was not made in a "natural" way.
the last crisis was resolved by urging on the local market.
with other words: people got cheap loans to increase their consumption.
what they forgot here is that nobody can give endless loans and that the day
will come to pay it back.
other countries have been slower in that process and some of them still suffering
an the 2008 crisis but they fixed it with INTERNATIONAL trade.
2. US also have a HUGE international trade and if you could calculate that also into the
import/export balance you would realize that US have already a BIG export
overweight.
that this export overweight canīt be counted here have to do with US tax laws.
this companies are simply open companies in other countries and the profits are
not "imported" to USA again BUT !!!! they can import the losses if they make possibly
and can cut them off tax.
if microsoft, apple, google, mc donalds, pfizer and amazone would REIMPORT this
profits they make outside of US and pay tax on it, the COMPLETE deficit of the whole
country could be paid at once.
3. you always attack china - but do you know what would happen with the world economy
if china fails?
if that is the case the 2008 crisis would just be a small rain against this class 6
hurricane.
90% of ALL american companies would go bankrupt within a month. and 70% of the
companies around the globe would be in the same position.
you think i am wrong? than wait - the next crisis is already waiting and i told you months ago that it will be starting with the US car industry. so go and look what happend to them yesterday. and then imagine how many other us companies are directly connected to them.
as i said these are just 3 of a few dozens of arguments what are proving you wrong.
your ideas can not work because you do not understand the rules behind the visible. world economy is a very complicated topic and believe me YOU do not have the knowledge to understand even 1% of it.
look by yourself where you would be now without your camera equipment made in asia, without the models made in CZ, without the customers all over the planet who are selling what yoau produced all over the planet.
you spek against your own live - and that was MUCH less complicated as the economy of the planet.