Can Trumps economic plan work?

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(01-09-2017, 11:50 PM)hollodero Wrote: I ask in honest interest. I can't tell, but I wonder.
It actually seems that automobile companies now intend to move back from Mexico to the US and produce there. They claim it has nothing to do with possible tariffs, but it seems more than just coincidental that these decisions are taking place now - even though the Mexican automobile business is obviously flourishing.

And never mind the environmental impact (because who does), can getting rid of regulations, digging out coal under American soil, decreasing taxation for companies and threatening with high tariffs really lead to more jobs? More wealth, even?
Or (I think that's possible) will the wage level shrink, getting closer to Mexican standards? Will the tariffs lead to less exports, hence not decreasing the trade deficit and eating up the possible positive effects by shrinking total production?

Economics is my weakest foot (well, one of the weak ones at least), so you could really form my opinion here. What an opportunity! I also don't want to mention or talk about the effect that taking jobs back from Mexico might increase the migration pressure and a flourishing neighbour would be the best way to decrease immigration. Because I heard you already got a wall in store for that very reason. And I simply wonder about the "domestic" success here.

So enlighten me. If you please.

I just saw that Trump's first official act is rumored to be withdrawing from the Trans Pacific Partnership.

I have held a very slim hope that Trump may actually govern effectively, and this increases that hope.

Those old enough to remember the first Clinton admin will remember NAFTA was in the works then. Ross Perot warned that there was a "giant sucking sound" and it was jobs going to Mexico if NAFTA passed. Looks like he was right. I have read the economic theories about fair trade, and like many theories they make sense, but seem not to actually work in the real world.

Part of the reason they don't/have not worked to this point appear to be - per President Clinton - the unanticipated focus on quarterly statements by corporate boards. This is similar to the shortsightedness you alluded to on the environment. We don't always act rationally, and since we don't, we need to modify practice from what should theoretically work (if people are rational) to what will work in actuality (since they aren't rational).