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Jack Davis
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Save American Jobs Commentary
 
Balanced Trade - Not Free Trade
by Jack Davis, Chairman
Save American Jobs Association

Balanced trade described in simple terms is, if a country desires to sell products to the United States, they are required to buy an equal dollar amount of products or services from the United States...

For a nation to be strong it must grow, dig, or manufacture a product.

America has become a nation of consumers of foreign products.

Because of this, America has suffered a serious loss of jobs, farms and industries.

Free trade agreements, NAFTA and WTO are destroying America.

There have been 20 years of continuous trade deficits. The trade deficit is now 3.8 trillion dollars. Last year's deficit was 435 billion dollars and increasing.

The federal budget deficit is 7 trillion dollars, a new record and increasing.

The promised outlays for social security and medicare benefits is 51 trillion dollars. Medicare will be bankrupt by 2019 and social security bankrupt by 2042.

There are 15 million unemployed Americans and a huge number of underemployed. Payroll jobs are down to 130.4 million - the lowest in four years.

If you operate a machine or sit at a desk, your job is not safe.

Any person that believes free trade is good for Americans still believes in the tooth fairy.

America needs Balanced Trade. Balanced trade described in simple terms is, if a country desires to sell products to the United States, they are required to buy an equal dollar amount of products or services from the United States.

The United States cannot force another country to do something they don't want to do (example: Iraq).

Historically, the proven method of controlling imports is with tariffs.

To obtain this balance, the United States will charge a balancing tariff (tax) on imported products. The tariff percentage amounts are variable and will be increased in five-percent increments until the trade balance is obtained.

If the United States exports more dollars in trade than it imports from a specific country, the tariff will be reduced until the trade balance is obtained or the tariff is zero.

The ideal Balanced Trade is equal trade with zero tariffs.

Since Red China has the greatest imbalance of trade, 124 billion dollars in 2003, we should apply a ten-percent balancing tariff on their total value of exports. In 2003 this was 152.4 billion dollars.

If ten percent were not sufficient, it would be increased to 15 percent then 20 percent and increased until the balance of trade is obtained. A tariff of 20 percent would provide the U.S. government with 30.5 billion dollars in 2003.

America imported products and services valued at 1.259 trillion dollars in 2003. This produced a trade deficit of 535 billion dollars. A ten-percent tariff on this would have provided the government with 126 billion dollars.

Select your favorite government program; Drugs for the Needy, Education, Social Security, Medicare, National Defense, Reducing the National Debt or Reducing Income Taxes, etc. Here are the funds.

If American purchasers choose not to buy Chinese products at the higher prices, good. BUY AMERICAN. This will put the American factories and their employees back to work.

The tax revenue to the government will also increase because American workers and American companies who manufacture the product have paid income taxes, social security taxes and medicare taxes.

Just placing the duty on Red Chinese products will send a strong message to all the other nations: You will be next. America is serious about balanced trade. Start buying American products.

Owners and managers of United States factories will see the prospects of growth and profits. They will begin hiring and investing in plants and equipment.

Then all Americans will prosper.


Jack Davis is the owner and manager of Squared R Element Company Inc. in Akron, New York. He employs 75 Western New Yorkers who earn an average wage of $25 per hour. In the 2004 election Jack ran for Congress in the New York State 26th District. After losing the race by a narrow margin, he founded the Save American Jobs Association - saveamericanjobs.us - as a vehicle to promote American jobs, farms and industries.

 

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Save American Jobs Association
Jack Davis - Chairman
12600 Clarence Center Road, P.O. Box 2005, Akron, New York 14001
Web: www.saveamericanjobs.us  Email: jack@saveamericanjobs.us
© 2006 Save American Jobs Association