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Underwriter here. It's been a long time since I've looked at macroeconomics but can you guys give me a run down of the proposed tariffs on Mexico?
From what I remember, they just increase the cost of goods for domestic consumers as the now taxed importer will pass costs to consumers and it also hurts consumers because domestic companies are under less pressure to lower prices due to the artificially higher prices charged by the now taxed importers.
Plus the country that got slapped with tariffs isn't going to sit there and take it, and slaps back with tariffs of their own further hurting domestic companies. Seems like this whole Mexico shitshow is lose-lose for everyone involved. Also, any Texans here? With so much of your economy and millions of jobs relying on trade with Mexico, what do you think about Trump's tariffs?
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>>1760611
My bad. I searched the catalog for "tariff" and didn't get a hit.
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Texan here, Trump's a fucking idiot in general. Your analysis Is basically correct. A tariff is a protectionist policy to make a country's own goods more attractive by inflating the price of foreign goods. If they're trying to "make Mexico pay" for the wall, this isn't how you do it.
As I understand it though, they're backing off because anyone who took basic macro Econ knows exactly what type of bullshit it is.
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>>1760615
>As I understand it though, they're backing off because anyone who took basic macro Econ knows exactly what type of bullshit it is.
Thanks. That's good to hear. I don't often agree with Republicans but they know corporate interests very well and those corporations are undoubtedly screaming that tariffs will just hurt them and everyone else.
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>>1760615
I thought it was more of a threat to get the Mexican government to provide better assistance with their nationals flooding over the boarder. If Mexico doesn't cooperate, the USA market basically goes away. That's fucking incentive.
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