starwolf_nexus
Veteran XV
Removing free trade will not decrease the price of shoes. Removing free trade WILL bring some of the jobs (general labor) or some high skilled jobs (robotics,engineering,etc...) to manufacture those shoes back to the US, because the companies can then COMPETE here in the US against those other nations.
Lets put it this way.
Before NAFTA
shoe costs 4.00 US on the shelf
shoe costs 3.00 to produce in the US
shoe costs 1.00 to produce in mexico
Getting shoe into the US cost the Mexico shoe company 2.00
Companies didn't have an incentive to use slave labor elsewhere to make more profit over US companies.
After NAFTA
shoe costs 4.00 US
shoe costs 3.00 to produce in the US
shoe costs 1.00 to produce in mexico
Getting shoe into the US cost the Mexico shoe company 0.00
Company has an incentive to move to Mexico because they can save 2.00 of production costs that they'd have paid in retrospect in tariffs.
NO-WHERE in "free trade" does the price ever decrease for the US consumer.
Lets put it this way.
Before NAFTA
shoe costs 4.00 US on the shelf
shoe costs 3.00 to produce in the US
shoe costs 1.00 to produce in mexico
Getting shoe into the US cost the Mexico shoe company 2.00
Companies didn't have an incentive to use slave labor elsewhere to make more profit over US companies.
After NAFTA
shoe costs 4.00 US
shoe costs 3.00 to produce in the US
shoe costs 1.00 to produce in mexico
Getting shoe into the US cost the Mexico shoe company 0.00
Company has an incentive to move to Mexico because they can save 2.00 of production costs that they'd have paid in retrospect in tariffs.
NO-WHERE in "free trade" does the price ever decrease for the US consumer.
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