Buffett offers up a different way to address the trade deficit

[Mik]

https://www.msn.com/en-us/money/news/even-warren-buffett-warned-that-america-s-trade-deficit-is-selling-the-nation-out-from-under-us-and-proposed-a-tariff-called-by-another-name-here-s-why-his-fix-is-better-than-trump-s/ar-AA1DDgop

[Axtremus]

Has Buffet talked about this "import certificate" idea recently? For all we know, he may have abandoned the idea.

[Mik]

It comes from an intelligent businessman and is worth considering. So consider it.

[Axtremus]

@Mik said in Buffett offers up a different way to address the trade deficit:

It comes from an intelligent businessman and is worth considering. So consider it.

1. I did. If an idea is worth considering only because an intelligent businessman proposed it, it is also worth asking why said intelligent businessman hasn't talked about it since. If the intelligent businessman has changed his mind, that is also worth considering.

2. An intelligent businessman may be good at running a business. Doesn't mean he's also good at running an economy. Microeconomics ≠ macroeconomics.

[Mik]

Vacuous.

[taiwan_girl]

This effectively limits total imports to the value of exports, achieving trade balance. It also creates a powerful financial incentive to export, since companies can sell their certificates on the open market to importers.

Not sure I agree with this. By that I mean that I am not 100% agree that a trade balance is the best strategy.

[jon-nyc]

Sounds more like barter than trade.