Is free trade good or bad?

[DirtyMartini]

So they'll make less money.

[Dinner]

Kid isn't very bright. Yes, some will end up in the U.S. at reduced price but beef is easily frozen and stored so much, possibly most, will end up finding alternative markets. Probably also at reduced price for producers due to increased shipping costs.

[giblets]

That's not the whole story though. Some goods will be cheaper.

I'm so glad corn will be slightly cheaper

[Dinner]

I may add that at the end of the day Mexico is going to do what it is told, sign what ever deal it has to, and then say "thank you, sir, may I have another" if that is what the US demands. This is because the US makes up about 88% of the entire North American market, due to the balance of trade Mexico has a hell of a lot more to lose, and though they hate to admit it they are our ***** and *****es get to do what they are told or else they get slapped. That is the not so nice real politik summary.

[DirtyMartini]

I was about to get to corn...

[DirtyMartini]

I may add that at the end of the day Mexico is going to do what it is told, sign what ever deal it has to, and then say "thank you, sir, may I have another" if that is what the US demands. This is because the US makes up about 88% of the entire North American market, due to the balance of trade Mexico has a hell of a lot more to lose, and though they hate to admit it they are our ***** and *****es get to do what they are told or else they get slapped. That is the not so nice real politik summary.

That's great, I'm very happy we get to **** our neighbor, I'm just struggling to understand how tariffs on Mexican imports actually help the US consumer since those costs will just be passed on to them. How do 20% more expensive tomatos and F150s help the average Trump voter? I

[giblets]

I may add that at the end of the day Mexico is going to do what it is told, sign what ever deal it has to, and then say "thank you, sir, may I have another" if that is what the US demands. This is because the US makes up about 88% of the entire North American market, due to the balance of trade Mexico has a hell of a lot more to lose, and though they hate to admit it they are our ***** and *****es get to do what they are told or else they get slapped. That is the not so nice real politik summary.

You're delusional. Any Mexican president who offered to pay for Trump's wall would be committing political suicide. Mexicans have too much national pride to ever accept that.

[Kidlicious]

Kid isn't very bright. Yes, some will end up in the U.S. at reduced price but beef is easily frozen and stored so much, possibly most, will end up finding alternative markets. Probably also at reduced price for producers due to increased shipping costs.

I didn't mention beef you dimwit. Someone else did.

[DirtyMartini]

by responding to my post you were infused with its beefy goodness.

[Kidlicious]

So they'll make less money.

This isn't about how much they make. The point was made that tariffs increase prices. But that's not the whole story. Oerdin hasn't told you the whole story either. This really isn't any big deal.

[Kidlicious]

That's great, I'm very happy we get to **** our neighbor, I'm just struggling to understand how tariffs on Mexican imports actually help the US consumer since those costs will just be passed on to them. How do 20% more expensive tomatos and F150s help the average Trump voter? I

The price of those goods aren't going to increase by 20%. There are many factors involved.

[DirtyMartini]

The price of those goods aren't going to increase by 20%. There are many factors involved.

Why not? I don't know much about economics, but I know the costs of doing business ultimately get passed on to the consumer.

I struggle to see how the average US consumer would benefit from a trade war with Mexico. I certainly see how poor Mexicans would be hurt -- maybe that is enough "benefit" for some to be in favor. The only argument is "the jobs will come back", which I believe is 1) a pipe dream and 2) not applicable to many of the affected trade goods (agricultural products being the most obvious example).

[Egbert]

You're delusional. Any Mexican president who offered to pay for Trump's wall would be committing political suicide. Mexicans have too much national pride to ever accept that.

Truth.

Mexico could never agree to pay for this "wall".

[Aeson]

I doubt you'll see any savings at the supermarket on meat or grains. Increased prices on fruits and veggies, as well as increased cost of living, will push consumers toward cheap food like processed meat and grain products, soaking up much of the increased supply. Corn prices are now mostly tied to oil prices anyway. Both because input costs as well as competition from for corn due to ethanol. Whatever little downward pressure there would be on prices the supply chain will make up for in higher costs.

If prices do drop though, it hurts American farmers who get the double whammy of decreased income and increased prices. This puts marginal farms out of business and rather quickly supply would drop back to a new, lower production equilibrium.

[Aeson]

The other likelihood is price fixing or increased subsidies to protect farmers. Either way we pay for it, whether at the supermarket or in taxes.