Tag Archives: trade deficit

Economic Plan For US Survival

Proposed Economic Plan

Before we reveal our Economic Plan to save America, you need to understand the problems we face. Manufacturing has and always will be the path to prosperity; without a growing manufacturing base, a country will plummet into recession. With the rise of China as the world store, Western countries have diversified into service-based industries. The problem with a service-based economy is that it is always the first to be affected by and last to recover from any economic downturn. So although very valuable, this plan uses the service industry as icing on the cake.

The Wall

Every single American, whether in denial or not, knows the devastating effect illegal immigrants are having on both the local and national economy. Unskilled jobs are being filled with illegals rather than Americans. Donald Trump has promised a wall to stop illegals from crossing the borders. As one of the world’s greatest developers, Mr trump is well qualified to build a wall.  The upside for the country would be reduced crime rates, more jobs, less stress on healthcare resources as well as making it much harder for cartels to transport drugs across the border. What about the downside? Uhm… Erm…we cannot come up with a single one. (Looking for your input here)

The Economic Plan Revealed

Here’s a novel idea: what if we had another trillion-dollar loan? The only difference, this one would not be wasted. The money would be used to fund this economic plan which, in turn, would lead to mass job creation. The federal government would make a compulsory purchase of a 1-mile-wide strip along the border. We’d build not only one wall, but two and put a roof on top. Why, you ask? What will this gigantic building be used for? Maybe as a transit station for the 20 million illegals already here? No,  read on. We are going to get them to leave by choice.

The Complex

The economic plan, The Industrial ComplexWe’ll build the largest industrial complex the world has ever seen. The Federal Government will then sell or lease the units to AMERICAN companies to produce items that we currently import from China.  The sale would be via a interest-free loan repayable over 30 years. Jobs in the complex will be allocated as follows: American workers would always get first choice. Next in line would be Mexican workers on daily, weekly or monthly complex-only visa’s.  The Mexican jobs would first be offered to illegals residing in the US, if and only if they return home to Mexico. The Complex starts where the border reaches the ocean in Texas. Here, we build the world’s largest port to enable us to export our products worldwide. This plan can be implemented in phases as the Complex grows. 

What is the ROI on this plan?
Immediate boost to the economy with thousands of construction jobs. In the long term, this will take care of the illegal problem as NO illegal would ever be able to use the excuse of “just looking for work” again. Any illegal on this side of the Complex would be construed as being up to no good and would be dealt with accordingly by the courts.
Manufacturing would slowly return to our shores, allowing us to achieve a higher growth rate. We would turn the tables on China; they could never compete with the quality that American-made products offer. The environment would benefit, as countless container ships would not be needed for the long voyages from China to the US. The cartels would find it extremely difficult to import drugs past security at the complex. The downside? In the short term, we would have another trillion dollars of debt, but that would soon be recouped by taxation (read on).  Product prices would be higher, as our labor laws are far more stringent than those of China. This is dealt with below. In the long-term there are NO downsides!

The Economics of the Plan

Our capitalist system dictates that it is a sink-or-swim system. Products compete in price and quality. Products manufactured in the Complex would have to be priced competitively with Chinese imports. The saving on shipping would not be enough for parity. Overcoming this problem requires our current trade agreements to be re-negotiated. The 2015 trade deficit between China and the US stood at:

This is alarming, to say the least. Any trade agreement should be in parity. If we export $1 to china, they can export $1 in return. In parity, there should be no tariffs.  Perfect world, right?  The problem is the disparity. China exported $481 billion to the US in 2015. In return, we exported $118 billion of products and services to China. The imbalance is the $365 billion figure you see above.

To combat this, the new trade agreement should be calculated in a way that penalizes any imbalance, both ways. You first have to convert the imbalance to a percentage. The above figures converted reveal that compared to 100% of Chinese imports, we exported 26% of that amount to them. So we have an imbalance of 74%. We then take that figure and divide it by 3:  74%/3= 26.6%. That would be the import tariff charged on imports from China the following year.  As a further example, if we exported 50% of the goods to China as they exported to us, the calculation for import tariff the following year would be as follows:  50%/3 = 16.6%, and so on.  The government income from such a trade deal in 2016 would have reaped $125.6 billion in the taxation of Chinese imports.

The same deal should be used for EVERY country that the US has a trade deficit with, including Mexico. Maybe import tariffs from Mexico would encourage manufacturers like Carrier to return home. Using the same formula as above, the tariff this year imposed on Mexican imports would be 6.6% This would convert to a taxation income of $19.56 billion. The import taxation from these two countries alone in one year reaps $145.1 billion. This is over 1/7th the cost of our Complex in a single year, and we haven’t even manufactured anything yet!

The above trade agreements would allow our products to compete on a price parity and allow us to gain business through quality.

This is just a mere draft, but our economic plan is sound and makes economic sense. What we now need is your help in tweaking it, or maybe you have your own plan to help Make America Great Again.  Join as a contributor and submit ideas. Comments can be left below.

1

Like Minded? Please spread the word :)

Social Media Auto Publish Powered By : XYZScripts.com