An employee at auto plant probably makes $25/hour for some repetitive work on the assembly line. The company will immediately reduce it to $16/hr.............take it or leave it. Upto 3 million "felony tagged" illegals will soon be deported. They must be doing some work to sustain themselves. Even if only 1/3rd of them worked at $8/hour, their jobs might be made official requiring $10-11/hour wages. Lots of welfare based guys will have to fill in........ like it or not. However, this is only 1/5th of the story. As to how will a business replace $2.5/hr chinese labor is the challenge and there is no answer to that. Down the road robots might replace some work but it would be tough matching $2.5/hour even for the robots. Current cost of robotics is around $8/hr in the US.
This is an extremely complex economic issue. That lower wage labor from other countries hurts the manufacturing of advanced nations........is only partially true. When US companies make products in China at $2.5/hour and pocket good net 20% returns vrs only 5% locally, then they have more funds available to invest into other technologies and assets to fine tune their businesses, improve their products or even divest into other industries. That US companies like Apple and others prefer to park their "slave labor" sourced profits in the tax haven countries like Cayman Islands and Bahamas and not pay any taxes to US government is an issue that needs a very serious glance. Am not sure, but US companies have more than $1 Trillion parked in the tax havens..............profits on which they have not given any taxes to the US government. Guess Trump would not even look into that as it would hurt his support base or even worse trigger the lobbies and groups that have the power to topple him from the throne.
All (macro) economic policies are complex by nature. When one day the US nation has accumulated huge deficits, getting bigger and bigger, and the giant multinational corporations (MNCs) registered/based in the US are keeping much much more money than the US nation, everything will change, when people see the trend. Partly also because Trump could be jealous, not liking other super riches! Besides, Bannon is a Leninist! Therefore a Big change! LOL
Thanks, I thought that I was crazy when I talked about it to other people. It's hard to believe that so many people would believe in this nonsense what he's trying to do.
Sorry, but no. He invented this whole idea that other countries steal our workplaces and so on, for one thing, it's bs these jobs will never come back no matter what he does.
A good article on the subject http://www.smh.com.au/business/comm...at-jobs-promise-is-a-lie-20170222-guijx3.html
That's a very interesting point. If trump wanted to discourage US companies from using foreign labor he should be pushing higher taxes for those firm rather than giving them tax amnesty on foreign income parked outside.
Missing the point. Has nothing to do with money or trade imbalance. Has everything to do with restoring dignity to a middle class that has been made obsolete. Doesn't fall into the category of economics.