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Trump Should Tread Softly On His New Trade Agenda
Investors Business Daily ^ | 11/28/16 2:03 PM ET | DAVID MCINTOSH and SCOTT LINCICOME

Posted on 11/29/2016 3:29:25 AM PST by expat_panama

President-Elect Donald Trump has released an ambitious to-do list. His plans for cutting individual and corporate taxes, for repealing and replacing ObamaCare, and for regulatory reform all hold great promise. But his threat to dismantle the North American Free Trade Agreement (NAFTA)...

...remember the tremendous benefits of trade, particularly through NAFTA. About one-third of all U.S. merchandise exports are bought by Mexico and Canada, and exports from our service industries and from the agriculture sector have risen dramatically under the agreement.

Thanks to imports, American families effectively stretch their pay check...

...imposition of tariffs punishes all American consumers, and businesses that use cheap imports as raw material in the things they make. The reward for tariffs goes to a select few in a certain politically connected industry that is being protected. It's cronyism that hurts...

...studies by the U.S. International Trade Commission and the Congressional Budget Office find an economic consensus that our trade agreements have produced lower prices, significant national gains in gross domestic product, jobs, and wages...

...exploiting ambiguities in the current web of U.S. trade laws to enact the president's trade priorities by executive fiat could engender opposition from Congress, the U.S. business community and U.S. trading partners, thus leading to court challenges...

...uncertainty surrounding the trade challenges would imperil trillions of dollars worth of goods and services, especially if the courts refused to enjoin the executive branch from acting while any such litigation is pending.

There is a better way. Congress should act quickly to clarify ambiguities in U.S. trade law...

...The alternative could be not only economic catastrophe, but also a potential constitutional crisis.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: economy; government; investing
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To: riverdawg
Ridiculous spin of statistics parroting liberal media lies.China makes most of the things Americans use .Should we be able to make our own things? But you say things ar the same.

China makes most computers, steel,electronics , etc. in the world far more in these items than the U.S. . In the U.S. not hardly any TVS etc
http://www.ibtimes.com/china-manufacturing-10-things-chinese-make-more-anyone-else-world-infographic-1369727


41 posted on 12/07/2016 9:59:46 PM PST by Democrat_media (bots are donating to Jill Stein's website for the recount. Soros behind big scheme)
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To: Democrat_media

“Ridiculous spin of statistics parroting liberal media lies.”

What is in my post that is a lie? We still manufacture many products that are high-value, using relatively capital-intensive processes. We could (and do) make shoes here, but most shoes that are sold here are relatively low-value, labor intensive items. Same with shirts, as another example. We could impose a steep tariff on imported shoes or shirts, and make more of them here. But shoes or shirts that we are accustomed to paying $75 for would then cost $100 or more.

The same is true for personal computers, TVs, smartphones, etc. Final assembly is relatively labor-intensive, which would make the total cost of production here substantially higher than it is in China and Mexico.

I agree with those who say that we need to maintain a manufacturing base for critical components used in defense-related production. I’m not in favor of out-sourcing nuclear submarines or air-superiority fighters. But that’s not an argument for tariffs on textiles or coal. Let’s reduce overly burdensome and ineffective regulations on domestic producers to help level the playing field in international trade. Then let the chips fall where they may.


42 posted on 12/08/2016 10:41:00 AM PST by riverdawg
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To: exDemMom

If you think there is a $40.00 difference between a 3rd world made toaster and a domestic made toaster I got news for you. The difference is really maybe a dollar per taster. The “Captains of Industry” are destroying our manufacturing sector for pennies on the dollar.


43 posted on 12/08/2016 10:44:43 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: PrairieLady2
Growth has to be balanced and steady. It makes no sense for example to hinder imports if you don’t have varieties of domestic product to compete with it.

They can build a car plant in Mexico in 6 month, they can do the same in Alabama.

44 posted on 12/08/2016 10:46:19 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: KittenClaws
It is getting harder to buy USA, because products are not labeled with country of origin.

Really? I have very little trouble finding the country of origin label on packaged products.

45 posted on 12/08/2016 10:50:01 AM PST by NorthMountain
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To: riverdawg
The same is true for personal computers, TVs, smartphones, etc. Final assembly is relatively labor-intensive, which would make the total cost of production here substantially higher than it is in China and Mexico.

Bologna. There is probably less than one-man hour labor to build a flat screen TV. Heck a passenger car the labor is 30 man-hours.

46 posted on 12/08/2016 11:27:44 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: NorthMountain
Really? I have very little trouble finding the country of origin label on packaged products.
__________________

Read closer.

There are plenty of “packaged at”, “distributed by” and fewer “produced by/manufactured by/grown at”.

47 posted on 12/08/2016 11:44:08 AM PST by KittenClaws ( Normalcy Bias. Do you have it?)
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To: KittenClaws
Read closer.

I read very carefully.I know the difference between "made in" or "produce of", and "designed in", "packaged in" etc.

48 posted on 12/08/2016 11:47:17 AM PST by NorthMountain
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To: central_va

“There is probably less than one-man hour labor to build a flat screen TV. Heck a passenger car the labor is 30 man-hours.”

Even with your estimate of one man hour per flat screen TV, the typical TV is, relative to value, more labor intensive than an automobile. You can but a very nice 40-inch flat screen TV for less than $300. (We just did, two months ago.) I don’t think you can buy a very nice compact car for less than $9,000 (30 x $300). What matters in determining where things are made (apart from transportation cost) is labor content per value created.


49 posted on 12/08/2016 11:49:16 AM PST by riverdawg
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To: nathanbedford

Where do you live? Are you not still in Germany? What exactly do you do in Germany?


50 posted on 12/08/2016 11:53:17 AM PST by Just mythoughts (Jesus said Luke 17:32 Remember Lot's wife.)
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To: riverdawg

One man-hour in Mexico is $3.00. One man-hour in the USA is 30.00. I would pay $27.00 more per TV for made in the USA. Less than a 10% difference.


51 posted on 12/08/2016 12:11:59 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

“I would pay $27.00 more per TV for made in the USA.”

If enough people agreed with you, then TVs would be made here in the US. I have often said, quoting the great philosopher Pogo, “We have met the enemy and it is us.”


52 posted on 12/08/2016 12:14:35 PM PST by riverdawg
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To: riverdawg

A 20% would take away the choice.


53 posted on 12/08/2016 12:15:16 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: riverdawg
What products do you have in mind? Mrs riverdawg buys nothing without knowing its country of origin.
___________________________________

It is not just knowing the country of origin, it is having the choice of countries to purchase from - particularly with food. But the supplier will not make it easy and I believe it is because they know USA products sell better.

For example, my local grocer sold tomatoes from USA and Mexico. The USA tomatoes disappeared quickly, while the Mexican tomatoes practically rotted in the store. (same with other origin marked produce).

Then the grocer put them all in one bin, but kept the origin stickers on the individual tomatoes. The USA tomatoes still out sold the Mexican tomatoes. Now the stickers are gone and they are in a common bin with a sign on the front “Product of USA and Mexico”

Additionally, I don't care where a product is “packaged” I care where it originated. There is no choice when subterfuge is used to trick the consumer into buying foreign products of any kind.

54 posted on 12/08/2016 1:47:49 PM PST by KittenClaws ( Normalcy Bias. Do you have it?)
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To: KittenClaws

We buy our produce at one of the local farmers’ markets when in season. It’s true that many tomatoes in some grocery stores are from Mexico. Mrs riverdawg will not buy tomatoes from a common bin like you described. Any grocer that uses subterfuge to hide or misrepresent country of origin loses mrs riverdawg as a customer. Fortunately, we have a large number of sources for our produce and other groceries, but I know that many people don’t.


55 posted on 12/08/2016 3:29:11 PM PST by riverdawg
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