September 3, 2018

THE HIGH COST OF RACISM AND BAKSHEESH:

Life After NAFTA (Veronique de Rugy, August 30, 2018 , Creators)

NAFTA had a positive impact on the U.S. economy. Writing about the risk of withdrawing from the 1994 agreement in The Wall Street Journal a few months ago, Matthew Slaughter, dean of the Tuck School of Business at Dartmouth College, wrote, "In a new report canvassing dozens of academic and policy studies, I find that the U.S. gross domestic product is now 0.2 percent to 0.3 percent larger than it would be without Nafta, a yearly boost of about $50 billion."

And while NATFA did boost Canadian and Mexican imports into our country, it also boosted U.S exports and increased foreign investments on our shores.

You see, when U.S. consumers buy imports from other countries, they send dollars abroad. However, these dollars always come back to us because foreign holders use them to purchase U.S. exports or invest here (for example, Toyota builds a factory in Ohio, or Canadians buy U.S. government bonds). In other words, more imports result in more exports, faster economic growth and lower interest rates paid on our gigantic government debt. This reality explains why the Business Roundtable predicts that a withdrawal from NAFTA would, in the initial post-exit years, shrink the U.S. economy by $120 billion and reduce American exports by more than 2 percent.

American consumers enjoy many benefits from NAFTA-induced imports from Canada and Mexico. From low-priced clothing to lower-priced avocados, "American consumers have saved $10.5 billion a year from lower tariffs under Nafta," Slaughter writes, "with most of the benefits going to households with annual incomes below $70,000."



Posted by at September 3, 2018 4:12 AM

  

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