Saturday, November 28, 2009

Trade deficit's the GDP and median wage..

“*** A nation’s annual trade deficit is always an immediate net economic detriment”.

When local producers have perceptively modified their volumes of productions, there is often obvious resonating production modifications within the community. Producers of completely unrelated products and services can be affected, (i.e. factory production affecting beauty parlors revenues). Modification of a community's gross production affects local employment and wage rates. This same phenomenon occurs when the initial catalytic producers were small but acting in concert. (That's often the case within single or allied industries). On a national scale this is all generally dispersed and thus less obvious but no less real.

For over a half century USA's continuously increasing annual trade deficits have been such a significant catalyst. Our annual GDP and median wage has been less than otherwise due to our pursuit of pure unrestricted free trade (among nations that are unwilling and/or unable to sufficiently compensate their laborers).

Trade deficit's detriment to the GDP exceeds the amount of the deficit itself. Anything detrimental to the GDP is also generally detrimental to the median wage. Our trade deficit's net detriment to USA's economy is greatly under-estimated by those influential within and outside of our government; (because its affect upon the median wage is proportionately a greater burden to lower income families)?".