Quote:
Originally Posted by PepsiFree
While a lot of free trade deals have just made governments richer while their people got poorer, it should be worth noting that this idea of "American goods" on the rise is horrible for the consumer.
What you're talking about accomplishes (maybe) making corporations richer, but it won't have a big benefit on the consumer. American goods cost more (a lot more, and no tax break is going to make up for the cost of local minimum wage, benefits, and expenses that far outweigh those in Asia for example). The tax on foreign goods also likely isn't high enough to deter foreign production, that cost will simply be passed onto the consumer.
Solely relying on foreign goods isn't good for the employment rate, but trade works when you're importing a need and exporting a excess. Decreasing imports will also have a negative impact on exports (which will have a negative financial impact), and decreasing imports from the wrong country (China for example) would be an idiotic mistake considering the extreme debt America is in to those countries.
It's nice that the employment rate might go up, but it also might go down when companies close, or these new employees might find that they can't afford anything anyway as costs skyrocket.
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I disagree, you make that foreign tax rate high enough that it levels out the overhead benefits that foreign countries have, it will nerf their competitive advantage. Plus will also create more jobs and circulate more money inside the economy. Both good things.
The problem is the US is racking up these huge trade deficits because of the discrepancy in imports vs exports. They aren't exporting nearly as much because of free trade and globalization. The trade debt the US has with China is mostly because of free trade and China's inclusion in the WTO. It's hard to compete with them when they have no regulations and slave labor. Making these same mistakes with TPP and the like will further lead to more job loss and a stagnating economy.
Also these giant corporations you are talking about getting even more rich, they will either way, that's how they operate, they are not in the business of losing money. Trying to tax them to heck like Hillary wants to won't work either, they will just move offshore. Her tax plan will make it impossible for small business to operate and won't effect these giant corporations at all.