Posted on 01/15/2017 11:16:31 AM PST by ColdOne
Jumping beans
Tequila
Guacamole
Sombreros
Marijuanna
Cocaine
Guess we get along without importing this stuff from Mexico.
Increased supply means decrease in price. The price reduction will increase demand. Maybe not fully replace the current demand but almost. But maybe it will totaly match current demand.
“They could indeed-but that has the potential for blowback, too. I dont see any of it as a win for Mexico...”
The bottom line is that if Mexico imposes a tariff of American goods, American jobs will be lost.
While Mexico can’t win, Mexico can absorb job losses better than the United States can.
There is one strategy that Mexico could pursue, and that is to trade products to the United States that come ONLY from companies that are either indigenous corporations of Mexico, or as partnerships set up with investment from nations OTHER than the United States. But moving production from the US to Mexico, while shutting down production here in the US, would trigger the tariff to be applied to the product re-entering the US.
Ford may build cars in Mexico, but they could then only be for domestic consumption by Mexicans, or exported to countries OTHER than the US. Say like Argentina, or Brazil, or Ecuador, or even China.
Or, Mexico could reform its land ownership system (based on old Spanish land grants) to allow title in fee simple to be held by individuals, and not as long-term land leases. This would go far to enable the Mexicans to hold on to a population that would become a much more actively participating factor of their republic than is now the case, and assist greatly in the long-term economic development of Mexico, as a viable capitalistic state. Mexico is richly endowed with considerable natural resources, that are not being adequately developed, nor will they allow anyone else to come in and develop these resources.
Trump is about to show Mexico "The Art of the Deal."
“They will send wave after wave of human excrement and narcolords north in response!”
Not after the Wall is up.
Do you want to go to war with Mexico?
“...On balance, Mexico would be more susceptible than the U.S. to damage from any sustained trade war between the U.S. and Mexico..”
In macroeconomics, that is likely correct, but it might not be on the micro level.
Essentially, Mexico has a lot of people living without work and in poverty. If you add more people that group, the impact on them is not all that bad. There is little impact on the standard of living.
Here in the US, job losses have a bigger impact, because with each job loss, the standard of living for someone significantly decreases.
What are they gonna do?
Quit shipping us illegal aliens?
How many American jobs are solely dependent on trade with Mexico???
How many Mexican jobs are solely dependent on the trade with the USA???
I’m waiting for Trump to deploy the military to the border to seal it tight. If anyone throws rocks at them, they will discover the new rules of engagement.
Only because millions of extra Mexicans are in the US being supported by our welfare system. What happens when they go back to Mexico?
I directly answered your question at #54. Try reading it.
Now answer my question Mr. Pill.
>>Do you want to continue the U.S. policy of profits regardless of consequences?
“Any excess production that would otherwise be exported to Mexico will find a domestic customer.”
That is some dicy economics and by that theory we may as well go full autarky and we know that does not work.
"Don't fire unless fired upon, but if they mean to have a war, let it begin here."
“How many American jobs are solely dependent on trade with Mexico???”
How ever many American jobs $267 billion dollars creates in the United States.
Who is “we”? There’s a customer for every product at the right price point. Since we have huge trade deficit with Mexico they have the much bigger problem then we do.
The measures they can try to impose on us would be like a bee sting.
The stuff we can do to them would be like a bullet through the heart. We can take down their whole society whenever we want.
So a 10% tariff would completely stop all exports to Mexico? Is that your logic? Or lack of logic.
“The measures they can try to impose on us would be like a bee sting.”
The loss of $267 billion in exports is more than a bee sting.
“The stuff we can do to them would be like a bullet through the heart. We can take down their whole society whenever we want.”
Wall or no wall, it is not in the best interests of the United States to destroy Mexico’s society.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.