People are saying the 20% border tax will result in Americans buying American made goods instead of goods made in Mexico. Maybe, but that only works if the product can be made in America for a 20% higher cost. And I fear the problem is that there will be more than a 20% differential.
In other words, the cost to manufacture and sell the same item in America would be greater than 20% higher, which would mean American business people will still not make the item. OK, let’s say that is what happens. So then what is Trump going to do? Raise it to 30%? 40%? Where this eventually goes is to vastly higher prices for goods.
Take a flat screen TV that costs $500.00. How many man-hours do you think went into that mass produced TV? If there is one man-hour I'd be shocked. So an American gets 30.00/hr to make TV's so now it costs $530.00. More but not that much more. Plus energy and shipping costs go down for domestic factories.