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^domestic goods will only be competitive because of tariffs etc on foreign goods. So get ready for prices to go up on everything.
So, TPP (and most international trade agreements) work is by trading tariff reduction for whatever else, though there's typically IP bullshit as well. TPP was a mixed bag because of the copyright and pharma IP provisions, so I'm not crying that it's gone. In general, however, as anyone who understands basic concepts of competitive advantage can tell you, reducing tariffs is unobjectionable beneficial, because it enables you to create long term value in specialized industries while lowering prices. Repeal of any free trade agreement will result in price increases, upsetting trade partners, and misallocation of domestic resources towards inefficient industries.
Yeah I'd say every economist agrees that trade is almost always good, because each trading partner has competitive advantages relative to the other. Rolling back major trade deals is a xenophobic, shortsighted move toward a protectionist trade war that could seriously harm the already anemic global economy. Disagreeing with specific language in the current agreements on the table is one thing. Coming in with a flat 19th century anti-trade perspective is quite another, and it's dangerous. I really hope that if we do pull out, we replace.
@KPMG1 it hurt a lot of people not because trade is bad, but because the gains (and pain) was felt asymmetrically. The businesses (or men and women) making bank on sending jobs from the areas I grew up in weren't required to chip in to help these people deal with the sudden & virtually permanent loss of their livelihoods as they knew it.
The baby boomers and most part of next generation population lost their competitive edge to developing nations. They started living in a world of self entitlement, but rest of world was breaking their backs to get ahead. Now they feel left out and are complaining about trade agreements and immigrants.
The effect***
^ so I think we all took basic Econ and know that we can expect an increase in tariffs and a rise in the price of consumer goods. I'm looking for someone who really has a lot of knowledge in this space to give their opinion
There is a scene from movie outsourced where a customer calls a call centre to purchase (if I rem right) an American flag. The call centre tells him its 2.99 but made is china. He screams saying he is patriotic and will even accept an American flag made in china. So he was given option of buying similar flag for 29.99 but made in US. Sure enough he about 2.99 and kept quiet
Goods import will be expensive so we will/can produce more good internally at competive cost and create jobs. Likely opposition from other countries in the world.
Buy your expensive foreign car now.
Trump isn't going to do shit with NAFTA and NATO once his corporate advisers get in his head. If he truly hires the best people (we'll see?) then he won't do what he says he's going to do.
Where can I find that movie? I've been trying to explain this simple concept to a few friends who have absolutely no grasp.
More jobs have been lost in the last two decades to automation than "being shipped overseas".
Studied Diplomacy & International Commerce for my MA and agree with what others have said in terms of the benefits of trade. I would also add that there are political gains from trade, i.e., countries that trade typically do not go to war with each other. This makes the concept of axing the TPP concerning - we should want better economic integration with our pacific neighbors. Do not want China setting the agenda over there.
Does US offer any incentives or tax breaks for manufacturing in the US? The focus needs to be about retooling these people to get back into the workforce elsewhere.
More debt at the end for next generation
What's the debt driver EY1? Just wondering.
ACN1, you're equating him negotiating /renegotiating these deals with being anti-trade? You don't have to be an advocate but please at least be at intellectually honest. Poorly formulated trade compacts have hurt a lot of people of all stripes in this country.
@D1 stated another way, the companies will win, the average consumer will lose. If companies decide to make an investment (they won't) in domestic manufacturing the job benefits will be so negligible vs. the downside on the economy.
EY 3 its there on Amazon.