This article talks about another one of Trump's attacks on the U.S. - Mexico relationship and how unhealthy it is for our domestic economy. It goes beyond just that to explain what the trade deficit really implies and how it isn't as bad as President Trump makes it out to be.
Interestingly, the article says Trump blames loss of American jobs to Mexico on NAFTA, but not Canada. He doesn't have much data to back up the Mexico claim either, any way.
http://money.cnn.com/2017/02/23/news/economy/trump-trade-mexico-kelly/index.html?iid=SF_LN
4 comments:
President Trump made trade one of his signature issues during the campaign, describing what he viewed as failed policies that have allowed foreign countries, notably China and Mexico, to profit at Americans’ expense. And he has not changed his view since he moved into the White House. Mr. Trump’s views on trade are quite different from those shared amongst members of the Republican Party, more so than on any other issue of economic policy. And some Republicans have reminded President Trump that protectionist measures could damage American economic growth. It'll be interesting to see if President Trump will revise this policy on trade because in the long run his current policy will be potentially damaging for the economy.
I agree with Qasim that trump is really focusing on the trade issue during his running for president and he still is focusing on it. this could end up hurting the U.S economy because we get a lot of products from Mexico. The reason that we get so much from there is because they can make it cheaper than the companies in the United States can, Trump wants to bring all those jobs back to the U.S but that would lead to a large price increase of products which will not go over well with the people in the United States. it is interesting to see that he has not said much about jobs going to Canada. it will be interesting to see what happens with the trade issue and NAFTA.
Donald Trump seems to be playing to the ideas of those who don't necessarily understand the basics of economics. Saying that the trade deficit with Mexico is bad for our economy and that it is NAFTA's fault are claims that some people will believe because they already don't like (or understand) NAFTA and our trade relationship with Mexico. I don't think people understand the implications of cutting down on trade with Mexico, as Zach states above. We should work to provide people with better and easier to understand information on such issues.
The focus on the trade relationship in this article is definitely not surprising to be hearing about. However, I do hope that it is something that we can stop hearing about soon out of the hope that it gets resolved. Until then, I do believe that most of Trump's strategy behind all of this is a poor attempt at negotiation. I do hope that he can tame it in order to peacefully negotiate new agreements that benefit everyone. Right now, the diminishing relationship with our neighbors is not healthy for our economy and must be resolved soon.
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