Trumpled (Alternative Leading)

[DJC]

Further to EB's post, consider the proposed 20% tax on goods imported from Mexico:

Apart from increasing the price of imported avocados, etc by 20%, the forced use of more expensive US-manufactured automotive components will force up the cost of motor vehicles, and this will apply to other parts of the US manufacturing industry too.

It's a classic example of what happens when simplistic, populist solutions are applied to complex, real world issues.

[cookie2]

Some economists maintain though that lower offshore costs only benefit a very small percentage of people in the US in terms of higher corporate profits and exec bonus's?

[Amers]

I think its best that people start analysing the media, their sources, and what the goals are.

Totally agree with this Thry, the media is absolutely agenda driven, and if all we do is swallow what they are feeding us, then we are just sheep going along for the ride. The chlorine in the water must be working.....

[ElwoodBlues1]

Totally agree with this Thry, the media is absolutely agenda driven, and if all we do is swallow what they are feeding us, then we are just sheep going along for the ride. The chlorine in the water must be working.....

Media dont control the the sharemarket in the USA, if that goes down so does the rest of the world. the honeymoon could be over for US sharemarket....this latest immigration fiasco already has US financial advisors telling clients to put  more money into cash and bail out of stocks..the US economy is leveraged against a lot of debt due to the last GFC as is the Aus economy...the debt in Aus has doubled since the Abbott days, Scott Morrison is running around trying to cover it up but the media are all over him. Next GFC the Banks will freeze all assets like they did in Greece, not a lot of people know the Banks signed agreements with Govts both here and in the US to freeze all accounts if a GFC occurs.
Look forward to lining up for two hours to get your $50 a week like they did in Greece if a financial numptie like Trump isnt reigned in and given a lesson in economic common sense...

[cookie2]

Totally agree with this Thry, the media is absolutely agenda driven, and if all we do is swallow what they are feeding us, then we are just sheep going along for the ride. The chlorine in the water must be working.....

Yep. The first thing to do is look at who actually owns the media.

[sydneybluesfan]

Some economists maintain though that lower offshore costs only benefit a very small percentage of people in the US in terms of higher corporate profits and exec bonus's?

But all consumers, especially those on lower and middle incomes, benefit from being able to buy 'cheaper' imported goods - whether it's food, electronics, cars etc. It increases their purchasing power, and puts downward pressure on inflation.

If all imported goods slugged with tariffs of between 20% [Mexico] and 45% [China] then the impact of these higher prices are felt disproportionately by the poor. And anyone who thinks that this will result in factories re-opening in the USA is delusional. And don't forget that all of the US's trading partners will retaliate in kind, which will impact on American businesses that have current export markets - which leads to redundancies and a likely recession.

Trade liberalisation has been embraced almost universally since the end of WWII for a simple reason - it works far better than the alternative. That's not to say it's perfect, and their are always going to be some 'losers' in individual industries, but the net benefit to countries and the efficient allocation of capital have been proven for nearly 70 years and this guy is going to come and try and turn this all on it's head and think it will not create far more problems than it solves??   

[cookie2]

Media dont control the the sharemarket in the USA, if that goes down so does the rest of the world. the honeymoon could be over for US sharemarket....this latest immigration fiasco already has US financial advisors telling clients to put  more money into cash and bail out of stocks..the US economy is leveraged against a lot of debt due to the last GFC as is the Aus economy...the debt in Aus has doubled since the Abbott days, Scott Morrison is running around trying to cover it up but the media are all over him. Next GFC the Banks will freeze all assets like they did in Greece, not a lot of people know the Banks signed agreements with Govts both here and in the US to freeze all accounts if a GFC occurs.
Look forward to lining up for two hours to get your $50 a week like they did in Greece if a financial numptie like Trump isnt reigned in and given a lesson in economic common sense...

The US is also looking at doing away with high denomination bank notes as has occured in India, restricting the amount of ready cash available and forcing electronic payments as far as possible. This would place much greater central control over money and enable bank "bail in "s to prevent bank failures. All part of global asset redistribution.

[cookie2]

But all consumers, especially those on lower and middle incomes, benefit from being able to buy 'cheaper' imported goods - whether it's food, electronics, cars etc. It increases their purchasing power, and puts downward pressure on inflation.

If all imported goods slugged with tariffs of between 20% [Mexico] and 45% [China] then the impact of these higher prices are felt disproportionately by the poor. And anyone who thinks that this will result in factories re-opening in the USA is delusional. And don't forget that all of the US's trading partners will retaliate in kind, which will impact on American businesses that have current export markets - which leads to redundancies and a likely recession.

Trade liberalisation has been embraced almost universally since the end of WWII for a simple reason - it works far better than the alternative. That's not to say it's perfect, and their are always going to be some 'losers' in individual industries, but the net benefit to countries and the efficient allocation of capital have been proven for nearly 70 years and this guy is going to come and try and turn this all on it's head and think it will not create far more problems than it solves?? 

The huge off shoring of jobs especially in the US has resulted in working and middle class real wages stagnating over the past twenty five years at least and a huge loss in tax revenue. I'm not a fan of Trump but if you think current global trade liberalisation practices are designed for the net benefit of the average Joe well best of luck.

[DJC]

Some economists maintain though that lower offshore costs only benefit a very small percentage of people in the US in terms of higher corporate profits and exec bonus's?

The people who will have to pay more for avocados and Cadillacs will be hurting in the hip pocket and that will eventually translate to votes.  Those who benefit from corporate profits and executive bonuses will continue to benefit regardless of manufacturing location, tariffs, taxes or whatever.  I think Trump understands the second part, particularly the bit about taxes  :

[cookie2]

The people who will have to pay more for avocados and Cadillacs will be hurting in the hip pocket and that will eventually translate to votes.  Those who benefit from corporate profits and executive bonuses will continue to benefit regardless of manufacturing location, tariffs, taxes or whatever.  I think Trump understands the second part, particularly the bit about taxes  :

Maybe you need to talk to the folks who buy potato's and can't afford a new Cadi? Those who can't get a job?