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Is the Large and Persistent U.S. Trade Deficit a Concern?

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Letter Writer:

Bernard Belitsky, retiree in Fort Lee, N.J.

Date Posted:

Aug. 22, 2012


Apparently, (author) YiLi Chien's greater interest and concern are for banking rather than wage-earning households. USA's global trade deficit has a leveraged affect upon our GDP. Trade deficits are detrimental to the GDP and the median wage. Net effect of a nation's global trade products are reflected within the nation's total GDP, but prices of individual products are dependent upon the products' producers' costs. Producers often receive reduced cost production support from nonprofit entities. Governments often facilitate infrastructure and police security for producers at reduced costs. Similarly, universities often provide research for individual producers or their entire industries at reduced costs. (The sum of net costs to both the producers of goods and the nonprofit entities are fully reflected within the producing nations' GDPs.) The total value, rather than the understated value of USA's trade deficit, fully benefitted the exporting nations rather than the USA. All economic differences between domestic and imported goods occur prior to the goods reaching a domestic producer's shipping platform or a USA port of entry. New Zealand lambs were nurtured, butchered, packed and shipped from New Zealand. USA's purchasers helped pay New Zealand taxes, their roads, their schools, their veterinarian colleges' research and development programs and many other of their enterprises' overhead expenses. We contributed to their knowledge and experience because they (not us) were employed to perform all of those tasks. Today, we don't produce goods; tomorrow we'll be unable to produce goods? Refer to: and