The next question to ask, how do we know that it is primarily due to the trade deficit? To answer this question requires a quantitative assessment. This author has provided a quantitative analysis from a correlation study between the free trade deficit and the national debt. This is published in my book and on the website, CitizensForEqualTrade.com. The actual dollar amount of the reverse tariff due to any yearly country's trade deficit is not quantified by any government to this author knowledge. However, the findings that are published do show that as the trade deficit is reduced, the effect on the national debt is reduced. Said another way, mathematically it is shown that when global trade is balanced (equal trade) no tax consequences exist. This is a key result in that it explicitly shows the economic flaw of free trade, its trade deficit's reverse tariff.
Free Trades Economic Flaw is magnified as in theory a reverse tariff (tax) can be interpreted as actually:
- An Illegal tax,
- An Unconstitutional violation
- A Violation of the World Trade Agreement
These violations are the subject of my next article that will be titled, U.S. Trade Deficit Creates A Reverse Tariff that Is Illegal and Threatens America's Future.
References:
1.http://en.wikipedia.org/wiki/Trade_deficit
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