Donald Trump's Competitive Advantage
Over the course of the recent presidential election protecting American jobs from other countries has been a major issue and may have played an important part in Donald Trump’s victory. The president has stated he will impose massive tariffs on China and Mexico. I do not believe the United States should try to strong arm other nations to trade with our economic might by using tariffs and subsidies. When nations do try to influence trade with other nations the consumer usually pays the price. The producer may also have to pay more for materials if other nations reciprocate by implementing the same trade restrictions put on them. When countries try to protect their own industries companies may start depending on the government and put the burden
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The U.S. Federal government as assisted sugar producers for over one hundred years with the use of tariffs. Twenty-six years ago the congress passed the Food, Agriculture, Conservation, and Trade Act of 1990 by which they assisted the agricultural industry. The bill was aimed at helping most of the agricultural sector. I will be discussing the impacts it has had on sugar producers in particular. The the Food, Agriculture, Conservation, and Trade Act of 1990 has helps farmers by placing a tariff on sugar import after a certain weight has been imported into the country. In addition, the Department of Agriculture also provides loans to sugar producers to make sure the can profit. In a free market American sugar producers would not be able to stay in business due to other nations significantly lower production costs. The loan can be paid back with cash if market prices are higher or they can just give the sugar to the government which will pay off the loan regardless of world market prices (About Sugarcane). This has led to sugar producer to become dependent on government assistance which in turn has taken away the incentive for sugar producer to grow other crops. Another consequence is the American consumer has historically paid more for sugar the rest of the
The U.S. Federal government as assisted sugar producers for over one hundred years with the use of tariffs. Twenty-six years ago the congress passed the Food, Agriculture, Conservation, and Trade Act of 1990 by which they assisted the agricultural industry. The bill was aimed at helping most of the agricultural sector. I will be discussing the impacts it has had on sugar producers in particular. The the Food, Agriculture, Conservation, and Trade Act of 1990 has helps farmers by placing a tariff on sugar import after a certain weight has been imported into the country. In addition, the Department of Agriculture also provides loans to sugar producers to make sure the can profit. In a free market American sugar producers would not be able to stay in business due to other nations significantly lower production costs. The loan can be paid back with cash if market prices are higher or they can just give the sugar to the government which will pay off the loan regardless of world market prices (About Sugarcane). This has led to sugar producer to become dependent on government assistance which in turn has taken away the incentive for sugar producer to grow other crops. Another consequence is the American consumer has historically paid more for sugar the rest of the