Carlton Supporters Club

I think its best that people start analysing the media, their sources, and what the goals are.

Totally agree with this Thry, the media is absolutely agenda driven, and if all we do is swallow what they are feeding us, then we are just sheep going along for the ride. The chlorine in the water must be working.....

Totally agree with this Thry, the media is absolutely agenda driven, and if all we do is swallow what they are feeding us, then we are just sheep going along for the ride. The chlorine in the water must be working.....

Some economists maintain though that lower offshore costs only benefit a very small percentage of people in the US in terms of higher corporate profits and exec bonus's?

Media dont control the the sharemarket in the USA, if that goes down so does the rest of the world. the honeymoon could be over for US sharemarket....this latest immigration fiasco already has US financial advisors telling clients to put  more money into cash and bail out of stocks..the US economy is leveraged against a lot of debt due to the last GFC as is the Aus economy...the debt in Aus has doubled since the Abbott days, Scott Morrison is running around trying to cover it up but the media are all over him. Next GFC the Banks will freeze all assets like they did in Greece, not a lot of people know the Banks signed agreements with Govts both here and in the US to freeze all accounts if a GFC occurs.
Look forward to lining up for two hours to get your $50 a week like they did in Greece if a financial numptie like Trump isnt reigned in and given a lesson in economic common sense...

But all consumers, especially those on lower and middle incomes, benefit from being able to buy 'cheaper' imported goods - whether it's food, electronics, cars etc. It increases their purchasing power, and puts downward pressure on inflation.

If all imported goods slugged with tariffs of between 20% [Mexico] and 45% [China] then the impact of these higher prices are felt disproportionately by the poor. And anyone who thinks that this will result in factories re-opening in the USA is delusional. And don't forget that all of the US's trading partners will retaliate in kind, which will impact on American businesses that have current export markets - which leads to redundancies and a likely recession.

Trade liberalisation has been embraced almost universally since the end of WWII for a simple reason - it works far better than the alternative. That's not to say it's perfect, and their are always going to be some 'losers' in individual industries, but the net benefit to countries and the efficient allocation of capital have been proven for nearly 70 years and this guy is going to come and try and turn this all on it's head and think it will not create far more problems than it solves??  

Some economists maintain though that lower offshore costs only benefit a very small percentage of people in the US in terms of higher corporate profits and exec bonus's?

The people who will have to pay more for avocados and Cadillacs will be hurting in the hip pocket and that will eventually translate to votes.  Those who benefit from corporate profits and executive bonuses will continue to benefit regardless of manufacturing location, tariffs, taxes or whatever.  I think Trump understands the second part, particularly the bit about taxes 

Maybe you need to talk to the folks who buy potato's and can't afford a new Cadi? Those who can't get a job?

The analyst I listened to made it very clear that imposing a 20% tax on a major trading partner would push up prices across the board, hence my avos and Cadis examples, but would have most impact on those least able to afford price increases - and who also eat a lot of guacamole  .  There's also the issue of job losses among up to 6M US residents involved directly or indirectly in businesses that rely on trade with Mexico.

Which analyst is that then? 

The huge off shoring of jobs especially in the US has resulted in working and middle class real wages stagnating over the past twenty five years at least and a huge loss in tax revenue. I'm not a fan of Trump but if you think current global trade liberalisation practices are designed for the net benefit of the average Joe well best of luck.

Which analyst is that then? 

Experts say a tariff would raise a mountain of concerns about U.S. jobs, the prices of products, and who actually pays for the wall.
"The notion that a 20% tariff is a way of forcing Mexico to pay for the wall, it's just a falsehood. It's a way of forcing American consumers to pay for the wall," says Edward Alden a trade expert at the Council on Foreign Relations.

Here's why.

First, about 6 million U.S. jobs depend on trade with Mexico, according to the U.S. Chamber of Commerce. Experts say those jobs would be jeopardized if Trump restricts trade with Mexico.

Americans will very likely face higher prices for many things -- from cars and computers to avocados and Corona. A litany of products imported from Mexico would be more expensive.

Companies from Ford (F) and GM (GM) to retailers like Walmart (WMT) and Best Buy (BBY) will likely be hit hard.

Taxing Mexican imports affects many U.S. companies that send parts south of the border to be assembled. About 40% of the parts in a typical Mexican import originate in the United States. For example, before a car arrives at a local dealership, its parts criss-cross the U.S, Mexican and Canadian borders. It's how supply chains are used today.

There are other less obvious ways a blunt tariff could come back to bite Americans. Higher prices on some products mean that Americans would have less money to spend on others.

That would end up costing jobs. That's what happened in 2009 after President Obama used tariffs on Chinese tires. It cost more jobs than it saved because prices for tires went up, one study found.

And a Trump tariff would apply to many more products, so the ripple effects would be a lot broader.

That brings us to who pays for the wall. When the U.S. government applies a tariff on Mexican goods shipped into the U.S., Mexican companies don't pay the tariff -- American companies pay it. Companies usually pass the increased cost of goods down to consumers, hence the higher price tag.
So yes, a 20% tariff would pay for the wall. But Mexico would not be paying for it. American consumers would ultimately pay the price. Literally.