Trump's plans to cease interactions with Mexico by "building a wall" means more than the impact on immigration. His proposed policies could "disrupt the delicate ecosystem" of trade, employment, and manufacturing that crosses the US/Mexico borders every day. Mexico's proximity and current border security (especially for certain locations in California) allow for easy and fast transactions simplifying trade costs. Trade with China is not able to provide these benefits, and although China has aided us with our deficit, Mexico is America's second largest export and America is Mexico's first. This means there is going to be a substantial impact on employment and GDP because of the decrease in Y.
The graph illustrates benefits of trade specifically with Mexico once NAFTA was passed. The possible impacts of removal of the NAFTA with Mexico would affect all of North America for the worse.
This is another interesting article to read about, because in the debates one of Trumps biggest arguments is the passing of NAFTA, which was passed by Bill Clinton. Although getting rid of this would hurt us, Trump has argued multiple times that it would help us, because NAFTA is shifting a lot of jobs outside the United States and into Mexico, which is why he wants to get rid of NAFTA. It will be interesting to see what each president does with NAFTA as it has hurt and helped the United States.
ReplyDeleteThis is a touchy subject, but I think if Trump is elected and he actually somehow does build a wall, I don't think there would be as big of a hit on trade. Obviously our trade relationship with Mexico is important because they are our #2 largest export, and we are their #1 export. If there were to be a wall, there would be some sort of door/way to get in and out, so the trade could still happen. There are other factors, but I find it hard to believe that trade would change very much.
ReplyDeleteI'm not sure how employment/unemployment is affected by NAFTA. My question is how and how many jobs are being outsourced to Mexico. Trade makes nations better off, especially when there are trade agreements to reduce costs and certain other expenditures allowing us to trade more freely increasing our economic growth. A wall would instantly hurt our economy and probably more so than the amount of jobs being lost.
ReplyDeleteIts hard to take Trump seriously when it comes to his Economic policies - He talks about decreasing the deficit while increasing government spending.
ReplyDeleteTrump's plan to cease interactions with Mexico will not work because, as you said, it will hurt the U.S economy due them losing one of their largest export country. This will also affect the workforce drastically because immigrants tend to do the jobs no one else wants to do because they do not have a choice or qualification for better jobs yet and if no one do does jobs, the economy will be affected negatively too. Im guessing that if he cuts trade in Mexico, he will do so for other countries similar to Mexico.
ReplyDeleteTrump's economics has no basis of practicality. I agree with Bill in that someone who talks as illogical is hard to take serious. The validity of his statements have no basis. How is he going to fund a wall of the magnitude he is talking about?
ReplyDeleteEven if Trump is elected I just don't see how he is going to "build the wall". I also don't see the good in building a wall with a country that is our second largest export.
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