https://www.aol.com/article/finance/201 ... /23502906/
I guess the Tariffs are not working for these workers or companies. It seems the jobs are going, not coming as usual as has been happening for many years.
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- casinterest
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Re: Layoffs, moving jobs to Mexico, cause Tariffs
WarRI1 wrote:https://www.aol.com/article/finance/2018/08/15/chicago-area-manufacturer-laying-off-153-workers-moving-mexico-trumps-tariffs/23502906/
I guess the Tariffs are not working for these workers or companies. It seems the jobs are going, not coming as usual as has been happening for many years.
Looks like the tariffs helped expand the Trade deficit. Highest Trade gap in three years.
https://www.cnbc.com/2018/09/05/us-trad ... years.html
"The Commerce Department said on Wednesday the trade gap jumped 9.5 percent to $50.1 billion, widening for a second straight month. Data for June was revised to show the trade deficit rising to $45.7 billion, instead of the previously reported $46.3 billion.
The politically sensitive goods trade deficit with China surged 10 percent to a record $36.8 billion."
Re: Layoffs, moving jobs to Mexico, cause Tariffs
The tariffs are playing a minor and short-term role in the trade deficit increase as companies that could build up on their inventories did so before tariffs kicked in.
The Trump administration's bigger problem is that, tariffs aside, it is adopting measures that tend to increase trade deficits, not lower them. Tax cuts increase buying power for consumers and businesses alike. Since the propensity to save is very, very low, most of that extra buying power is spent, increasing trade deficits in two ways:
#1 Consumers spend more overall maintaining the average balance between domestic and foreign goods, so purchases from foreign manufacturers increase;
#2 Not all domestic manufacturers can increase production in the short-term, so increased domestic demand means less output available for foreign markets.
Higher purchases from foreign manufacturers coupled with lower exports of US-made goods does not lower trade deficits.
One very effective way to lower trade deficits is to incentivize consumers to spend less. One such incentive would be higher interest rates on savings and debt-financed purchases, which would come from higher federal reserve rates...
The Trump administration's bigger problem is that, tariffs aside, it is adopting measures that tend to increase trade deficits, not lower them. Tax cuts increase buying power for consumers and businesses alike. Since the propensity to save is very, very low, most of that extra buying power is spent, increasing trade deficits in two ways:
#1 Consumers spend more overall maintaining the average balance between domestic and foreign goods, so purchases from foreign manufacturers increase;
#2 Not all domestic manufacturers can increase production in the short-term, so increased domestic demand means less output available for foreign markets.
Higher purchases from foreign manufacturers coupled with lower exports of US-made goods does not lower trade deficits.
One very effective way to lower trade deficits is to incentivize consumers to spend less. One such incentive would be higher interest rates on savings and debt-financed purchases, which would come from higher federal reserve rates...
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- WIederling
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Re: Layoffs, moving jobs to Mexico, cause Tariffs
blueflyer wrote:One very effective way to lower trade deficits is to incentivize consumers to spend less. One such incentive would be higher interest rates on savings and debt-financed purchases, which would come from higher federal reserve rates...
In theory the tariffs should show for the US similar effect to those sanctions placed on Russian.
making importado expensive is strong incentive to increase local production.
( for Russia this seems to work. ... and the government can put the blame for any hardship on the "US/West". )
... but for the US it seems to not work as expected?
Re: Layoffs, moving jobs to Mexico, cause Tariffs
blueflyer wrote:One very effective way to lower trade deficits is to incentivize consumers to spend less. One such incentive would be higher interest rates on savings and debt-financed purchases, which would come from higher federal reserve rates...
Which would in turn make the national debt more expensive and even less sustainable than it is.
Beat regards
Thomas
Re: Layoffs, moving jobs to Mexico, cause Tariffs
WIederling wrote:blueflyer wrote:One very effective way to lower trade deficits is to incentivize consumers to spend less. One such incentive would be higher interest rates on savings and debt-financed purchases, which would come from higher federal reserve rates...
In theory the tariffs should show for the US similar effect to those sanctions placed on Russian.
making importado expensive is strong incentive to increase local production.
( for Russia this seems to work. ... and the government can put the blame for any hardship on the "US/West". )
... but for the US it seems to not work as expected?
Let's not drag Russia into this, this isn't a shining example either and sanctions are a different animal then tariffs, they are also targeted differently.
For America, well you can have tariffs on steel and aluminum like they have introduced, but that doesn't mean you have a steel or aluminum factory operating the next day, some specialized products aren't made in the US. In the meantime, you are adding expenses to products which use this steel and aluminum which you still need to import. If those products are exported again, you have made your own manufactures less competitive on the global market. The same goes for the domestic market: if only steel and aluminum in "raw" form are affected, then products made abroad, thus without these tariffs, are cheaper. Both mean that America's own manufacture industry can't compete because of these tariffs. So much winning......
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