re: 7 Quick Takeaways from America's New Trade Agreement with Canada and Mexico

quote:

---

The agreement will require at least 30 percent of cars (rising to 40 percent by 2023) to be made by workers earning $16 an hour. This will force more cars to be produced in the U.S. and Canada since the typical manufacturing wage in Mexico is only about $5 per hour. The agreement also requires Mexico to make it easier for workers to form unions, which will make them less competitive against more productive unionized workers in the U.S. and Canada.

---

I'm going to pick out this point as it seems the most negative in the article, and probably the one IB is literally shaking over.

Yes it will raise car prices... which in turn does what?

Forces increased competition and use R&D and CREATIVITY to find more efficient use of production, rather than taking the simple approach of moving to another country with rock bottom wages.

Short term we pay higher prices, long-term U.S. benefits.

Secondly, this opens up a much larger job market in the U.S. Jobs are one of the most important aspects of an economy, if not the most important. More of the labor force employed means increased M velocity, less crime, higher wages which has benefit ripples throughout the economy.

Again, short term higher prices, long-term U.S. benefits.

I could keep going on, but the main point for you to learn IB is to look beyond what's right in front of your face, and look towards the future.

You really think Trump would do all of this if he was only interested in short term gains??? He would look like a genius (to the ignorants) if he did so because short term indicators would rise. But 10-20 years from now we'd look back on the deal, as we do NAFTA, and realize ignorant/corrupt politicians weren't thinking for the long-term.