DeacMan
Well-known member
- Joined
- Mar 20, 2011
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You neglect the very most basic concepts:
The US is 2.75 times as large as Mexico.
The US has over 3.5 times the per capita income of Mexico.
If each country raises tariffs to 20%, we can still afford their products and will still buy them. Many Mexicans and Mexican companies will not be able to absorb the price increases. Thus we are more likely to lose more.
Of course no sane person wants a trade war and there is no reason for one. In reality, the trade deficit is really low when comparing the sizes of the economies, the incomes in each nation and products being sold, the deficit is not bad.
The math that counts is purchasing power. We have much more than they do.
Dude. You are just out to lunch.
Here - this was written in the New York Times, the New York Post and a host of other media outlets.
'If President Trump makes good on threats to gut NAFTA and impose stiff tariffs on Mexican goods, economists say he risks a trade war that could lead to the very thing he is hoping to avoid — a huge surge in Mexican migration to the United States.
The result would be catastrophe for the Mexican economy: Recession. A dramatic weakening of the peso, even below the historic lows it has already set amid Trump's bellicose rhetoric. Soaring inflation, interest rates and unemployment.
"Mexico is smaller than the U.S. and can be harmed by conflict more than the U.S. would be," said Adam Posen, president of the Peterson Institute for International Economics, a Washington think tank that supports free trade.'
If you won't believe me, will you believe economists? Can anyone convince you of the obvious?
Look at what happened to the peso the day Trump opened his mouth. It PLUMMETED against the dollar. Trump is the one making the demands to talk. They could have told him to screw off. They didn't they accepted the need for talks. They get it. Why don't you?
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