01-31-2017, 06:30 AM
(01-31-2017, 06:12 AM)sydneybluesfan link Wrote: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.
Reality always wins in the end.

