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Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protections to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.
Further undermines the silly "hates Mexicans" propaganda. Also undermines tariffs as a policy of their own. It was clearly a negotiation tactic.
All the provisions:
Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protections to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.
US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
Intellectual property and digital trade: The dealextends the terms of copyright to 70 years beyond the life of the author (up from 50). It also includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and ebooks, and protections for internet companies so they’re not liable for content their users produce.
Sunset clause: The agreement adds a 16-year sunset clause —meaning the terms of the agreement expire, or “sunset,” after 16 years. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
With similar labor laws then one country cannot out compete the other by turning their workers into chattel.
Trade deficit shrunk? Well that’s great. The budget deficit is more than a trillion dollars, national debt is up when the economy is the “greatest” it’s ever been
Exactly. If you ask any macroeconomist, trade deficits don’t matter! Budget deficits are what we should care about.
Exactly. If you ask any macroeconomist, trade deficits don’t matter! Budget deficits are what we should care about.
Yes they matter, but budget deficits by lower taxes or spending? Also keep in mind commercial credit also matters. I would prefer budget deficits from tax cuts and a curtailing of credit for real estate such that one is obligated to put 20% down, no exceptions.
And keep in mind trade deficits mean less circulation domestically if they end up as foreign reserves.
Yes they matter, but budget deficits by lower taxes or spending? Also keep in mind commercial credit also matters. I would prefer budget deficits from tax cuts and a curtailing of credit for real estate such that one is obligated to put 20% down, no exceptions.
And keep in mind trade deficits mean less circulation domestically if they end up as foreign reserves.
That’s a matter of your political slant and not fundamentally important to the discussion. What is important is that we should be paying off debt while the economy is not in a recession so we have the capacity to take on debt when it is. The tax cut was among the most poorly time tax cuts in history from an economic sense.
Budget deficits are far more important than trade deficits. I run a trade deficit with my barber. I buy stuff from her and she buys nothing from me. It doesn’t concern me. If I start borrowing money from her I have a problem.
Trade deficits do not hurt GDP, trade wars do. The currency flows back into the US. It’s not largely held as foreign reserves. A trade war increases our currency value, thus dampening our export market. Although it’s not hurt enough to completely offset the tariff, but our increased buying power abroad due to currency valuation means that we end up buying from other countries like Vietnam. So, you don’t buy as much from China, but now you buy from Vietnam. The net impact is that GDP growth is inhibited by a percent or so. MAGA!
That’s a matter of your political slant and not fundamentally important to the discussion. What is important is that we should be paying off debt while the economy is not in a recession so we have the capacity to take on debt when it is. The tax cut was among the most poorly time tax cuts in history from an economic sense.
Budget deficits are far more important than trade deficits. I run a trade deficit with my barber. I buy stuff from her and she buys nothing from me. It doesn’t concern me. If I start borrowing money from her I have a problem.
Trade deficits do not hurt GDP, trade wars do. The currency flows back into the US. It’s not largely held as foreign reserves. A trade war increases our currency value, thus dampening our export market. Although it’s not hurt enough to completely offset the tariff, but our increased buying power abroad due to currency valuation means that we end up buying from other countries like Vietnam. So, you don’t buy as much from China, but now you buy from Vietnam. The net impact is that GDP growth is inhibited by a percent or so. MAGA!
Lower GDP in a trade war has as much relevance as does margins when Walmart engages in a price war.
As for buying from Vietnam instead of China.....yes, when you get cold french fries at McDonald's, one tactic is to go to Wendy's.
- Budget deficit should be going down right now, but because of recent policies, it is exploding
- The Fed has fewer tools to fight off a recession because of this.
- Budget deficit should be going down right now, but because of recent policies, it is exploding
- The Fed has fewer tools to fight off a recession because of this.
Of course I miss it because its a convenient myth. Its complete nonsense but useful for controlling the idiots who would raid the Treasury.
I can't buy an RV because I only have a million $USD worth of Treasuries that the Fed will not directly monetize......?
A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury.
Tytler
Unfortunately in 2008 it was the Ephors of Sparta that raided the Treasury .
If you do not agree that da guberment prints money when it goes into debt, it will be pointless to because we do not agree on fundamental concepts.
Da guberment can avoid a recession( defined by employment and nominal GDP) at will. The rub is what is actually being produced.
Of course I miss it because its a convenient myth. Its complete nonsense but useful for controlling the idiots who would raid the Treasury.
I can't buy an RV because I only have a million $USD worth of Treasuries that the Fed will not directly monetize......?
A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury.
Tytler
Unfortunately in 2008 it was the Ephors of Sparta that raided the Treasury .
If you do not agree that da guberment prints money when it goes into debt, it will be pointless to because we do not agree on fundamental concepts.
Da guberment can avoid a recession( defined by employment and nominal GDP) at will. The rub is what is actually being produced.
This post shows a complete lack of understanding of how global economies work. There is no sense in debating with conspiracy theorists.
Illinois’ five state systems have reduced their assumed rates of return in recent years. In 2008, three of the systems used a rate of 8.5 percent. While the rates have come down to more realistic levels, Illinois taxpayers should be concerned that they are still too optimistic.
If the central bank brings up rates by 1%, and the federal funds rate rises from 2% to 3%, the bank will be yielding $30 million on customer accounts. Of course, the payout to customers will still be $10 million. This is a powerful effect. Whenever economic data or comments from central bank officials hint at rate hikes, these types of stocks begin to rally first.
Issue: The persistent low interest rate environment has had a notable impact on many segments of the economy, including the life insurance industry. Interest rates declined significantly for about 8 years following the 2007-2008 global financial crisis. Historically low rates still persist despite recent action by the Federal Reserve (Fed). Persistent low interest rates are identified as a major threat for life insurance companies, given their rate-sensitive products and investments.
Hmm so debtors play less money to creditors with low rats. That means that the money that debtors save comes at the expenses of creditor incomes.......with no net addition to existing private assets....
Since you will not be talking to me, praise the lord, maybe you could find some evidence for the mythology for others on this board.
"The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would."
-Marx.
Yeah, basically something even Marx could figure out. Da gubermnet prints money when it goes into debt. The fed is irrelevant.
The government does not just “print more money” whenever we rack up a deficit. The Fed controls monetary policy. They do not call Treasury and have them fire up the presses when Trump says so. If we printed more money whenever we wanted to in order to pay off debt, inflation would spike and our borrowing costs would explode. We watched this happen in Zimbabwe. We aren’t Zimbabwe. We have controls in place to stop this sort of thing from happening.
You are propagating a conspiracy theory that is bereft of any facts.
Last edited by SkyDog77; 02-12-2020 at 08:34 AM..
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