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holfresh
Posts: 38679 Alba Posts: 0 Joined: 1/14/2006 Member: #1081 |
![]() Vmart wrote:holfresh wrote:Vmart wrote:DrAlphaeus wrote:Trump had the chance to bring jobs back to America when he was a "job creator" making ties abroad, or importing Chinese steel. What he chose were to maximize his profits. Why would any business leader put patriotism over profits during Trump/Pence administration? Would he do this with more regulation? Tariffs? Policy that slows down automation? Is everyone just working for ICE and therefore he's growing the government and the deficit? http://thehill.com/blogs/pundits-blog/presidential-campaign/247649-no-mr-trump-mexico-is-not-killing-us-on-trade Problems: his insulting tone, his marketing of his own dark fantasies and his grievous choice of words. Does he know there are 160 million Mexicans and Mexican-Americans? Does he know that Mexicans have bought trillions of dollars' worth of goods and services from the United States in recent years? Does he know that millions of Americans go to work every day to work in trade with Mexico? The real problem with Trump's outburst against Mexicans is that he says all Mexicans are "killing us on trade ... and the country of Mexico is making billions of dollars in doing so." But that, Mr. Trump, is not true. ADVERTISEMENT What examples, Mr. Trump? I don't see any. Trump: "I have great respect for Mexico and love their people and their peoples' great spirit. The problem is, however, that their leaders are far smarter, more cunning, and better negotiators than ours." Great respect, really? Mr. Trump, yes or no, do Mexicans benefit the United States? Trade: In 1993, before NAFTA took effect (which it did in January 1994), Mexico bought $41 billion in goods and services from the U.S. and sold $39 Billion worth to the United States. Total: $80 billion. In the first year of NAFTA, the $80 billion increased to $99 billion, a 25 percent increase. Ten years after NAFTA started, total trade between the U.S. and Mexico was $145 billion — an increase of 55 percent. In 2003, almost twenty years after NAFTA began, total trade with Mexico was $506 billion — half a trillion dollars — which is 632 percent more than 1994. In 2014, by contrast, the United States exported $123 billion in goods to China and imported $466 billion from China. That's a minus $343 billion imbalance in trade. In 2014, the U.S. exported $49 billion of goods to Germany and imported $123 billion for an imbalance of minus $73 billion (lots of Mercedes and BMWs). Here is something that Mr. Trump apparently does not know: U.S.-Mexico trade is unique in the world; there is a "production sharing" program between Mexico and the United States in which, according to the Wilson Center's Mexico Institute, "A full 40 [percent] of the content of U.S. imports from Mexico is actually produced in the United States. ... This means that forty cents of every dollar spent on imports from Mexico comes back to the United States, a quantity ten times greater that the four cents returning for each dollar paid on Chinese imports." This production sharing with Mexico is vital for the United States. For example, between 2009 and 2014, according to the Congressional Research Service, the U.S. imported a total of $341 billion in cars and car parts from Mexico, of which $136 billion was the 40 percent that Mexico bought from us to install in cars assembled in Mexico, then exported to the U.S. In $341 billion dollars worth of goods imported from China, 4 percent would be $13 billion — compared to 10 times more from Mexico. "Production sharing" means that the U.S. has an actual positive balance of trade with Mexico, rather than huge deficits as with China, Germany, United Kingdom, Japan etc. For example, in 2014, Mexico sold $290 billion to the U.S. Forty percent of $290 Billion is $116 billion which, when added to the $240 billion in goods and services we sold Mexico, totals at $356 billion, or a positive trade balance of $182 billion. Mr. Trump, do the math. The Wilson Center also posits that "There are 6 million U.S. jobs that depend on trade with Mexico. Two border states that trade extensively with Mexico, California (692,000 jobs) and Texas (463,000 jobs) have the most…Detroit (alone) exports $10.9 BILLION in cars and car parts to Mexico (part of the total of $20 BILLION worth of cars and auto parts exported to Mexico)." The United States Chamber of Commerce offers a higher estimate of 14 million American jobs in trade with Mexico. In short, Trump's 22,000 jobs don't amount to much compared to the 6 million to 14 million Americans who work in trade with Mexico. Mexico-dependent jobs number between 272 and 622 times more than Trump's payroll. On balance, it can be said that trade with Mexico and Mexicans is far more beneficial to the United States and millions of Americans than not. Why, then, is anyone taking Trump seriously? We know that Mexico benefits millions upon millions of Americans in jobs and lower prices in goods such as flat-screen TVs, cars, fruits and vegetables. How many Mexican-made cars sold in the U.S. cost as much as cars made in Europe? None! Trump insists that Mexico is ripping us off by buying $356 billion in goods and services from us last year and more than a trillion dollars' worth since 2010. Donald Trump insults Mexicans, our best customers. That's good business? |
Vmart
Posts: 31800 Alba Posts: 1 Joined: 5/23/2002 Member: #247 USA |
![]() holfresh wrote:Vmart wrote:holfresh wrote:Vmart wrote:DrAlphaeus wrote:Trump had the chance to bring jobs back to America when he was a "job creator" making ties abroad, or importing Chinese steel. What he chose were to maximize his profits. Why would any business leader put patriotism over profits during Trump/Pence administration? Would he do this with more regulation? Tariffs? Policy that slows down automation? Is everyone just working for ICE and therefore he's growing the government and the deficit? http://clas.berkeley.edu/research/trade-nafta-paradox You are going to believe a fluff article designed to make Trump look bad or Cal-Berkeley. |
earthmansurfer
Posts: 24005 Alba Posts: 0 Joined: 1/26/2005 Member: #858 Germany |
![]() Vmart wrote:holfresh wrote:Vmart wrote:holfresh wrote:Vmart wrote:DrAlphaeus wrote:Trump had the chance to bring jobs back to America when he was a "job creator" making ties abroad, or importing Chinese steel. What he chose were to maximize his profits. Why would any business leader put patriotism over profits during Trump/Pence administration? Would he do this with more regulation? Tariffs? Policy that slows down automation? Is everyone just working for ICE and therefore he's growing the government and the deficit? But his article was mainstream and verified. The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift. Albert Einstein
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holfresh
Posts: 38679 Alba Posts: 0 Joined: 1/14/2006 Member: #1081 |
![]() Vmart wrote:holfresh wrote:Vmart wrote:holfresh wrote:Vmart wrote:DrAlphaeus wrote:Trump had the chance to bring jobs back to America when he was a "job creator" making ties abroad, or importing Chinese steel. What he chose were to maximize his profits. Why would any business leader put patriotism over profits during Trump/Pence administration? Would he do this with more regulation? Tariffs? Policy that slows down automation? Is everyone just working for ICE and therefore he's growing the government and the deficit? You are correct about the trade balance...My point in all this is that those jobs aren't coming back due to automation... We go from 80 billion in trade to 500 billion and still no expansion in the economy in both US and Mexico..So what other dynamic is occurring which isn't reflected in these figures, efficiency..more products are being made cheaply due to automation...Trump can't change that dynamic...The following is from your article from Mexico's point of view on NAFTA.. Rising Productivity and Declining Wages While very different economies, the United States and Mexico share similar problems: sharp income inequality, slow growth, high unemployment, and persistent underemployment. These problems are exacerbated by a troubling paradox: rising productivity combined with falling real wages. As a result, much of the economic gain has flowed to the top as workers and communities have faced downward pressure on wages and working conditions. While this productivity/wage disconnect emerged as a key issue during the Nafta debate, it now feeds into a growing concern in many countries throughout the world, including the United States, about the corrosive effects of economic inequality, which President Obama has called the defining issue of our time. Mexican Productivity and Compensation, 1994-2011 Mexican Productivity and Compensation, 1994-2011 Labor Productivity & Median Real Hourly Compensation for Workers in Manufacturing (1994=100) Sources:Encuesta Industrial Mensual (CMAP). Banco de Información Económica (BIE), Instituto Nacional de Estadística y Geografía (INEGI). Consider the dimensions of this disconnect in Mexico. Mexican manufacturing productivity rose by almost 80 percent under Nafta between 1994 and 2010, while real hourly compensation — wages and benefits — slid by nearly 20 percent. In fact, this data understates the productivity/wage disconnect. Wages in 1994, the base year, were already 30 percent below their 1980 level despite significant increases in productivity during this period. Although they are producing more, millions of Mexican workers are earning less than they did three decades ago. Economists often maintain that if wages are low, their level simply reflects low productivity. In the Mexican case, however, low wages exist in spite of strong gains in manufacturing productivity. These low wages reflect a number of factors, from government policy to globalization, but a central issue is the lack of labor rights in the export sector. As a result, it is difficult to form independent unions that can exert pressure to restore a more robust link between productivity and wages. If workers are unable to share in the gains, high-productivity poverty becomes a danger. The damage affects more than Mexican workers. The gap between productivity and wages results in low purchasing power, which depresses consumer demand and slows economic growth. |
meloshouldgo
Posts: 26565 Alba Posts: 0 Joined: 5/3/2014 Member: #5801 |
![]() Article on the overall impact of NAFTA. How it drove wages down and took the negotiating power and leverage away from the working middle class. Also largely negative impact on small businesses. Only the big companies and their C-level benefited from NAFTA
http://www.investopedia.com/articles/economics/08/north-american-free-trade-agreement.asp Thank you Clintons I cannot teach anybody anything. I can only try to make them think - Socrates
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