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The previous administration imposed tariffs on imports, but it did not yield positive results.
That's a pretty broad statement. Is it true?
If you're talking about Oreos, there was a boycott started by the AFL-CIO and signed onto in 2015 by "a certain 2016 candidate for President". Currently, Oreos are still made in Mexico, so the boycott failed but that wasn't a tariff.
If you're talking about the avocado tariffs, those much-ballyhooed tariffs never materialized because Mexico gave in to the demands of the head of the "previous administration". So the threat of tariffs (actually an initial 5% tariff on "everything" and rapidly increasing to 15%, but the news media picked avocados as the poster child) actually worked.
It all comes back to the dollar. A strong dollar increases the cost of our products and reduces exports.
Additionally, we are importing more products that are not grown here, or farmers want to grow more corn.
OK, strong dollar.
But as a previous poster pointed out, we are exporting raw material and importing finished goods. Case in point, Oreo cookies. So we export wheat (or whatever they're made of), which is great, but we import cookies we used to bake here. AFL-CIO boycott notwithstanding. Lose-lose for us. Higher trade deficit and more jobs that ain't coming back.
It all comes back to the dollar. A strong dollar increases the cost of our products and reduces exports.
Additionally, we are importing more products that are not grown here, or farmers want to grow more corn.
Quote:
Originally Posted by jtab4994
OK, strong dollar.
...
BTW I looked up that "strong dollar" thing. According to the USDA going back to 2001 (see link) we have run a trade surplus in agriculture since at least 2001, except for a shallow deficit in 2020 and now in the last couple of years. Presumably there have been periods of strength and weakness in the dollar during that period.
BTW I looked up that "strong dollar" thing. According to the USDA going back to 2001 (see link) we have run a trade surplus in agriculture since at least 2001, except for a shallow deficit in 2020 and now in the last couple of years. Presumably there have been periods of strength and weakness in the dollar during that period.
I watched a documentary tonight on the PBS series Independent Lens the film is called 'Greener Pastures'
The film shows the struggle of family farms in America. The show is worth watching.
Four Midwestern farm families persevere through climate change, industrialization, and mental health crises. https://www.pbs.org/independentlens/
Farm income went down again last year. Most farmers hope to just break even. How long would you continue your business if that was your situation? What can we do to keep farmers in business? Food security is a problem for all of us. https://www.marketplace.org/2024/01/...o-record-high/
They've been singing that song about farming as long as anyone alive can remember. And yet, the price of farmland acreage continues to increase, and young farmers complain about not being able to get into the field, and so on.
Quote:
Originally Posted by jtab4994
So to boil it down, for every $10 in wheat we export, we import $12 in mangoes.
How is that not a problem when we extrapolate that into hundreds of billions?
Because you're comparing what is basically a raw material in food to what is a niche end product/luxury good.
While they're both commodities in that you can exchange a Brazilian mango with one from India, you have a product with a short shelf life and relatively narrow application. You can easily replace mangoes with peaches, plums or apricots. And while I really like being able to buy Peaches or Apricots all year round, it isn't really a concern if I have to buy canned or dried ones instead of fresh imported ones in January.
Because you're comparing what is basically a raw material in food to what is a niche end product/luxury good.
While they're both commodities in that you can exchange a Brazilian mango with one from India, you have a product with a short shelf life and relatively narrow application. You can easily replace mangoes with peaches, plums or apricots. And while I really like being able to buy Peaches or Apricots all year round, it isn't really a concern if I have to buy canned or dried ones instead of fresh imported ones in January.
We export products X, Y and Z and we import products A, B, and C. We are running a deficit where we used to run a surplus. Why?
We export products X, Y and Z and we import products A, B, and C. We are running a deficit where we used to run a surplus. Why?
Because we are sufficiently wealthy to do so. We are sufficiently wealthy that people think nothing buying citrus and produce that was produced abroad. At Costco yesterday, there was a whole aisle of cheese. Cheese from Norway that sold for $7/lb. Spanish Manchego at $10/lb. Peccorino Romano, also $10/lb. 365 days a year people buy fresh apples in the grocery store, and no one thinks that's unusual or luxurious.
On a Thursday night, they had people waltzing the wine aisle. Some made in California, but plenty imported. Costco has some good buys on wine, they also have wine that sells for over $100/bottle.
Because we are sufficiently wealthy to do so. We are sufficiently wealthy that people think nothing buying citrus and produce that was produced abroad. At Costco yesterday, there was a whole aisle of cheese. Cheese from Norway that sold for $7/lb. Spanish Manchego at $10/lb. Peccorino Romano, also $10/lb. 365 days a year people buy fresh apples in the grocery store, and no one thinks that's unusual or luxurious.
On a Thursday night, they had people waltzing the wine aisle. Some made in California, but plenty imported. Costco has some good buys on wine, they also have wine that sells for over $100/bottle.
Costco's limited edition Código 1530 Añejo is a unique, small-batch tequila $125.88
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