(November 23, 2016 at 9:20 pm)chimp3 Wrote:(November 23, 2016 at 11:25 am)Drich Wrote: It is cheaper at the moment, but what Trump is purposing is putting a tax a big one on all imported good from mexico. Clinton 1 signed the North American Free trade agreement/NAFTA. When he did that big companies like ford started shipping all their factories to mexico because no labor unions which means for the cost of 1 American worker they could now hire 4 Mexican workers.No . Tariffs and taxes on imports mean that shit costs more for the consumer. The costs get added on to the price.
But because Trump told ford there will be a 35% tax comming on all imports from Mexico... Ford said it is now cheaper to employ american workers.
NOW it is cheaper to build the festiva or whatever ford wants to build here.
This means Ford and companies like ford will look to cash in on now cheaper production costs in the USA rather than over seas. That means reopening factories here which means jobs here.
To put it another way when we have more production jobs here we have a larger consumer base as more people are working and have more of a disposable income.
^^^^^^ That last line right there is the core of Reagan's deregulation corporate blackmail.
What these fuckers DO NOT UNDERSTAND is higher taxes don't have to be looked at as a bane. If wages for workers kept up with the cost of living, that would create MORE revenue.
No business owner, big or small is going to hire one more person than they need. The more people that come through the door, the more pressure there is for them to hire. WELL, guess who outnumbers who? WORKERS outnumber the business owners so they, not the business owner constitute the bulk of demand.
"We have to pass that tax onto the consumer" BULLSHIT, that gets wiped out by livable wages.
If one looks at the tax rate between the end of WW2 up to 1980 when Reagan started deregulation and cutting taxes for the rich, you'd know that at one point the tax rate on the uber rich was 90% and only 50% after all the deductions.
Trickle down is bullshit and does not work.
