custom ad
OpinionNovember 20, 2016

Other candidates did/do not understand that the U.S. negative trade balance is bleeding the U.S. dry. Reagan’s economic boom was largely due to a huge reduction of the trade imbalance as oil imports were greatly reduced during the period when most home heating was converted from oil to made in the U.S.A natural gas...

Other candidates did/do not understand that the U.S. negative trade balance is bleeding the U.S. dry.

Reagan’s economic boom was largely due to a huge reduction of the trade imbalance as oil imports were greatly reduced during the period when most home heating was converted from oil to made in the U.S.A natural gas.

Trump understands and has said so:

1) The trade imbalance with Mexico arises becaU.S.e of the taxes built into U.S. export products versU.S. the Value Added Tax system of Mexico where the price of Mexican exports does not have an embedded tax component. This is an uneven playing field with European trade as well.

2) The U.S. mU.S.t become energy independent as oil imports is the largest component of the U.S. negative trade balance.

Receive Daily Headlines FREESign up today!

3) Government is an overhead cost in doing bU.S.iness. The first rule of successful bU.S.iness is to reduce overhead costs and taxes to make products more competitive.

When the U.S. exports dollars they are gone and do not contribute to GDP growth nor stimulate the U.S. economy. When the trade balance is equal those dollars not sent to other countries stays in the U.S. and is circulated between all the U.S. consumers, increasing the U.S. GDP.

Other politicians/candidates see an increase in population/immigration as a way to increase the U.S. GDP. But an increase in population has a myriad of hidden costs and unintended consequences so is not a solution.

Let’s Make America Great Again!

David Epps, Cape Girardeau

Advertisement

Connect with the Southeast Missourian Newsroom:

For corrections to this story or other insights for the editor, click here. To submit a letter to the editor, click here. To learn about the Southeast Missourian’s AI Policy, click here.

Advertisement
Receive Daily Headlines FREESign up today!