Sunday, October 23, 2016

Impacts of "Trumponomics"



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.