by Respectfully - Supposn

Created on: March 22, 2009   Last Updated: April 18, 2009

I'm a proponent of an economic stimulus proposal lacking government net expense. I among those favoring Warren Buffett's concept underlying the S. 3899 Dorgan/Feinman Balanced Trade Restoration Act of 2006 that was proposed to the 109th Congress.

Considering global politics, now may not be the optimum time for enacting this concept but there will never be a politically "right" time. It would be to USA's economic advantage that the U. S. congress reconsider and the USA enacts this concept sooner rather than later.

Such a bill would significantly reduce USA's trade deficit of goods. It would also induce the sum of our imports plus exports to increase. Trade deficit's detriment to the gross domestic product, (GDP) exceeds the amount of the deficit itself. Anything detrimental to the GDP is generally detrimental to the median wage.

As proposed to the U.S. Senate, exporters of goods from the USA would be assessed and transferable IMPORT Certificates for that assessed value would be issued to them.

Importers would be required to surrender IMPORT Certificates for the assessed value of their goods entering the USA. Surrendered certificates are cancelled. Surrendered certificates are then cancelled.

I concur with those advocating that the assessment and issuance of valuable transferable IMPORT certificate be dependent upon the exporter choosing to pay the fee to cover all federal assessment and administrative expenses. There is no reason for a net penny of federal expense due to this proposal. The opportunity of profit is sufficient motivation.

Also, adjustments should exclude the value of specifically listed scarce or precious minerals integral to goods being assessed. We want to discourage export of gem studded cast gold paper weights facilitating hi-tech manufactured imports and take the issue of carbon fuels "off the table". This is a "deal buster" with regard to precious gems, ores, and metals. The lack of their exclusion would undermine (if not completely evade) the proposal's purpose.

GDP and median wage are the most indicative measures of current production and distribution of wealth. Other than this concept, I'm aware of no single economic proposal that would be more economically beneficial to our nation. Such an act would continue to benefit our nation for scores of years, (if not centuries). Rather than requiring trillions of dollars investment, this proposal is of no government net expense.

USA consumers can continue to enjoy cheap (but not the absolute cheapest) imports and annual median wages that are (after adjustment for inflation) still significantly greater. I'm aware of no existing or proposed trade policy that could accomplish this with less government intervention or less increased prices of imported goods.

Refer to:

www.USA-Trade-Deficit.Blogspot.com

www.govtrack.us /congress/billtext.xpd?bill=s109-3899

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