Tuesday, August 28, 2018

Steve’s Barking; Trade deal with Mexico or a nothing burger

Trumps trade deal seems to be a nothing burger for the U.S.
 Mexican  Auto workers get a huge raise. Some Auto workers in the U.S. get a small raise.
Because factories are already built in Mexico those factories are more modern then most in the states, and it would be impractical to move the manufacturing to the States, zero sum gain.
The price of autos will probably cost more. Because the cost of the car goes up, it would seem that less cars will be sold. It would also seem it the cost of big ticket  items might stay the same profits go down.
There’s been no report that the steel tariffs are off, another cost that make car more expensive making it harder for the average American to buy a car.
Now don’t get me wrong I love it that all Auto works get  decent money, but it’s no great shakes for U.S. Auto workers. Doesn’t help American business, so I’m  wondering  what good is it?



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