Some politicians, labor unions, and special interest groups argue that US trade deficits are harmful to the economy and nations that run large trade surpluses with the US are benefiting from unfair trade practices and agreements. These parties support increasing tariffs on imports, elimination, or re-writing of trade agreements.
Respond to the following in a minimum of 175 words:
- Discuss what credible economists say about the effects that tariffs, changing trade agreements, and/or manipulating exchange rates will have on the total US trade balance.
- Do you agree with their assertions? Why or why not?
RESPOND TO Saridania and Rebecca post be professional and constructive with response.
The United States of America is considered the largest economy in the world. However, over time, various decisions, including trade agreements, have led to a negative U.S trade balance because the monetary value of the goods and services imported exceeds the economic value of goods and services exported. In response to the effects of the agreements, a section of economists believes that the solution is to alter the arrangements made and even impose tariffs to have a positive trade balance. For instance, some economists argue that the agreements need to be changed because they lead to a negative trade deficit and job loss to Americans. Additionally, because of the deals, countries engage in manipulative acts that hurt the local manufacturing sector and jobs, further worsening the U.S trade balance (Scott & Schott, 2017). From a personal point of view, it is agreeable that the trade agreements have hurt the U.S trade balance, and if the remedy is imposing tariffs or altering the contracts, then that needs to be done.
That is because just with a simple examination at the issue of trade agreements and how it affects the balance between the country’s monetary value of exports and imports is evident with trade agreements that have led to a negative trade balance and, in return, loss of jobs. For instance, agreements that permit trade between the U.S and the low-wage nations negatively impact American workers, especially those without college degrees, as they are the ones rendered jobless. Thus, tariffs should be increased, and some agreements need to be re-written.
According to Tax Foundation trade barriers such as tariffs have shown to cause more harm to the economy then good: they cause higher prices and less availability for goods and services which results in lower income, higher unemployment rates and lower economic output (York, 2018). I feel as though it is hard to disagree with facts. We as a country have faced so many of this effects personality with the lack of product and the price increase because of that. While a lot of tariffs have been dropped there are still some very important goods that are still included in tariffs and cause great issues for citizens. For example imported goods create much higher tax burdens items such as knit or crocheted apparel and clothing (York, 2018). I think that there needs to better way to be able to trade with less effects on the consumer. Trade has been around for so long now I just lack the understanding of what can make it better of be implemented to assist in the process to override the burden brought down to the consumer.
For your journal assignment, think of your favorite author or your favorite book, story, poem, or other piece of creative work. Share this in your post and then answer the following questions, using your readings as guidance:
- What POV does the author use? Will you use a similar POV in your own creative work?
- What is one aspect of the author’s tone or style that you would like to use (or avoid using) in your own work?
For your post, what do you consider to be the most important consideration or principle when giving feedback? Why?