(08-27-2018 02:48 PM)WKUYG Wrote:  

(08-27-2018 02:27 PM)bearcatmark Wrote:  The two changes I've seen so far seem like the kind of thing that would help American workers in those specific industries but cost american consumers. However, only looking at those things in isolation doesn't tell you much about a deal that is sure to be fairly comprehensive (and my guess is fairly close to NAFTA in its actual framework).

I look at it this way, is a car made in Mexico, cheaper than the one made in America? I dont think so, so any increase in wages will be sucked up by someone but the consumer. If not more American made cars will be sold.

Unless there's conclusion between manufactures to increase prices across the board there will not be a huge (if any) price increase. No matter what it cost to produce in Mexico it's not going to hurt the finial cost to us. Not if the products (like cars) are already being made in America.

Now if something not being made here then it might be a price increase. But even then with the Internet and the ability to buy direct no full cost of increase will be passed on to the consumer. The companies that have got by for years on that cheap labor will be eating that cost. Or most of it.

Ultimately it's a balancing act. No doubt a cost assembled in Mexico with predominantly made Mexican parts is the same price as one made in the U.S. with predominantly made U.S. parts. If the company can make more profit with a cheaper cost structure, it obviously helps the bottom line and could result in a net preservation of jobs in the U.S. thru reinvestment. On the flip side, if a large percentage of good paying jobs are lost and never come back then it's an anchor on the U.S. economy.

An interesting case study is the medium term effect crossovers will have on the buying patterns of the U.S. consumer. Ford killed all of their cars in favor of making trucks, SUVs and crossovers only (for the U.S. market at least). The Big 3 generally make their most profitable vehicles in the U.S. and have pushed the lower value brands - compacts and subcompacts in particular - to Mexico. If the U.S. consumer buys fewer cars in favor of crossovers, will that translate into more vehicles made in the U.S.? We will see.