7 ms·

Sounds like a boon for Mexico, good for them. I guess it's kind of satisfying to see these policies have the opposite of the intended effect.

hourislate 6y ago
>it's kind of satisfying to see these policies have the opposite of the intended effect This policy is actually doing exactly what it is suppose to. It is preventing more auto manufacturers from moving operations to Mexico or Canada where labor and Exchange rates are more favorable. GM, FORD, Toyota, Honda, Chrysler all had their eye on moving more production to Mexico, this new agreement probably stops that. I don't think anyone thought an auto manufacturer in Mexico would pull up shop and move to the US, that wouldn't make sense.
- thisisnico 6y ago
  Nothing is moving to Canada, there had been a pretty big exodus from Michigan and Ontario to Texas and Mexico after Nafta. They’re still closing plants in Ontario and moving them to Mexico. 16$ an hour is less than what they pay in Canada. Source: I work for a supplier in the Automotive Capital of Canada. These comments are so egregiously false.
  - hourislate 6y ago
    >16$ an hour is less than what they pay in Canada. It's the equivalent of 16. USD. So around 22. CAD? I agree, nothing is moving to Canada (comment was more aimed at Mexico)I guess since you work for a supplier you heard of FORD probably closing down their Oakville Assembly plant since they are not assigning any vehicle production to that plant after they stop making the Edge and the Lincoln equivalent.
    - thisisnico 6y ago
      They've also closed the Oshawa GM Plant, and they've reduced a shift at the FCA minivan plant. GM exited Windsor about 20 years ago. If anything the new agreement is aimed at re-balancing auto back to the US and Canada. We had a great automotive relationship in the past, it's mutually beneficial to both economies as there are strengths and weaknesses in the US industry and Canadian Industry. I'm interested to see what happens. I want to see Detroit as great as it was before NAFTA destroyed it.
Aloha 6y ago
It's good for the US to have economically prosperous neighbors too.
- 0max 6y ago
  hilarious to the point of tears since we've been enabling the opposite for decades
  - adventured 6y ago
    Canada is one of the most affluent, stable, peaceful nations. For 2019 Canada's GDP per capita just barely missed surpassing Germany. They happen to be a prominent neighbor to the US, their primary cities are positioned next to the US border, and they are likely to get a lot wealthier in the coming decades. If the US gets credit for the bad, it also gets credit for the good (which is the part that critics universally evade at all costs). In GDP per capita Mexico ranks in front of 120 other nations, including: China, Turkey, Brazil, Argentina, Thailand, and just behind Russia. US imports are 1/3 of their economy; we're running a $100 billion trade deficit with Mexico, which is to their benefit. As an American I'm happy that we're doing that, it's to our benefit that Mexico's economy advances. It has the 15th largest economy in the world and continues to gradually climb. That's despite the intense domestic chaos they've been dealing with there the past ~13 years. As a developing nation their long-term economic potential is immense.
    - mbrodersen 6y ago
      GDP is completely useless as an indicator of anything important. Sell the same house 10 times and it will contribute to the GDP 10 times. However it is the same house. Nothing has changed. Nothing of value has been added.
      - ta17711771 6y ago
        Real estate agents hate him!
samfisher83 6y ago
Even triple the pay they are making $16 dollars/hour which is less than whatever an american auto worker is going to make.
- hourislate 6y ago
  I don't know about that. Being an autoworker no longer pays that well from what I understand. There are tiered levels of pay depending on how long ago you were hired, etc. It's not like the old days where you earned what the guy with 30 years of seniority earned per hour. Even the benefits are different with some folks who have been around for a couple of decades enjoy a different level of coverage or vacation, etc.
- masukomi 6y ago
  Mexican workers get a dramatic quality of life improvement. US workers don't have to work for less than market value / cost of living prices. Tens of thousands of US people continue to get cheap cars. Sounds like a great deal.
  - gurumeditations 6y ago
    Exporting working class jobs from a higher cost of living area to a lower cost of living area is on the whole a loss for the vast majority of people who are not wealthy and a gain for those who are wealthy. It’s a blatant wealth transfer from the masses to the wealthy few. So Americans get cheaper cars but no way to pay for them, and wealthy Americans get record levels of wealth. Globalism is a sham and it’s surprising to still see someone parrot its hollow logic that only makes sense if you look at it in the short term and on a small scale instead of as a long term society-wide trend.
    - ksk 6y ago
      Well, nobody is "owed" a job. Markets transform and respond to pressures. When you operate in a saturated market like the US the only line item on the balance sheet that is easy to tackle is labor costs, not revenue or profit. Your customers aren't going to buy products from you because you gave a raise to your janitor instead of replacing them with a roomba (relax, its a joke :P). The China/Walmart economy is here to stay. For retail companies, the only growth markets that you can sell into are the developing world markets around the world. These are also the companies your retirement funds are invested in, unless you don't want your savings to grow. If every country turned protectionist, it will trigger a massive economic depression. I suppose we'd come out of it eventually, if global warming doesn't kill us first :)

hourislate 6y ago

>it's kind of satisfying to see these policies have the opposite of the intended effect This policy is actually doing exactly what it is suppose to. It is preventing more auto manufacturers from moving operations to Mexico or Canada where labor and Exchange rates are more favorable. GM, FORD, Toyota, Honda, Chrysler all had their eye on moving more production to Mexico, this new agreement probably stops that. I don't think anyone thought an auto manufacturer in Mexico would pull up shop and move to the US, that wouldn't make sense.

thisisnico 6y ago
Nothing is moving to Canada, there had been a pretty big exodus from Michigan and Ontario to Texas and Mexico after Nafta. They’re still closing plants in Ontario and moving them to Mexico. 16$ an hour is less than what they pay in Canada. Source: I work for a supplier in the Automotive Capital of Canada. These comments are so egregiously false.
- hourislate 6y ago
  >16$ an hour is less than what they pay in Canada. It's the equivalent of 16. USD. So around 22. CAD? I agree, nothing is moving to Canada (comment was more aimed at Mexico)I guess since you work for a supplier you heard of FORD probably closing down their Oakville Assembly plant since they are not assigning any vehicle production to that plant after they stop making the Edge and the Lincoln equivalent.
  - thisisnico 6y ago
    They've also closed the Oshawa GM Plant, and they've reduced a shift at the FCA minivan plant. GM exited Windsor about 20 years ago. If anything the new agreement is aimed at re-balancing auto back to the US and Canada. We had a great automotive relationship in the past, it's mutually beneficial to both economies as there are strengths and weaknesses in the US industry and Canadian Industry. I'm interested to see what happens. I want to see Detroit as great as it was before NAFTA destroyed it.

Aloha 6y ago

It's good for the US to have economically prosperous neighbors too.

0max 6y ago
hilarious to the point of tears since we've been enabling the opposite for decades
- adventured 6y ago
  Canada is one of the most affluent, stable, peaceful nations. For 2019 Canada's GDP per capita just barely missed surpassing Germany. They happen to be a prominent neighbor to the US, their primary cities are positioned next to the US border, and they are likely to get a lot wealthier in the coming decades. If the US gets credit for the bad, it also gets credit for the good (which is the part that critics universally evade at all costs). In GDP per capita Mexico ranks in front of 120 other nations, including: China, Turkey, Brazil, Argentina, Thailand, and just behind Russia. US imports are 1/3 of their economy; we're running a $100 billion trade deficit with Mexico, which is to their benefit. As an American I'm happy that we're doing that, it's to our benefit that Mexico's economy advances. It has the 15th largest economy in the world and continues to gradually climb. That's despite the intense domestic chaos they've been dealing with there the past ~13 years. As a developing nation their long-term economic potential is immense.
  - mbrodersen 6y ago
    GDP is completely useless as an indicator of anything important. Sell the same house 10 times and it will contribute to the GDP 10 times. However it is the same house. Nothing has changed. Nothing of value has been added.
    - ta17711771 6y ago
      Real estate agents hate him!

samfisher83 6y ago

Even triple the pay they are making $16 dollars/hour which is less than whatever an american auto worker is going to make.

hourislate 6y ago
I don't know about that. Being an autoworker no longer pays that well from what I understand. There are tiered levels of pay depending on how long ago you were hired, etc. It's not like the old days where you earned what the guy with 30 years of seniority earned per hour. Even the benefits are different with some folks who have been around for a couple of decades enjoy a different level of coverage or vacation, etc.
masukomi 6y ago
Mexican workers get a dramatic quality of life improvement. US workers don't have to work for less than market value / cost of living prices. Tens of thousands of US people continue to get cheap cars. Sounds like a great deal.
- gurumeditations 6y ago
  Exporting working class jobs from a higher cost of living area to a lower cost of living area is on the whole a loss for the vast majority of people who are not wealthy and a gain for those who are wealthy. It’s a blatant wealth transfer from the masses to the wealthy few. So Americans get cheaper cars but no way to pay for them, and wealthy Americans get record levels of wealth. Globalism is a sham and it’s surprising to still see someone parrot its hollow logic that only makes sense if you look at it in the short term and on a small scale instead of as a long term society-wide trend.
  - ksk 6y ago
    Well, nobody is "owed" a job. Markets transform and respond to pressures. When you operate in a saturated market like the US the only line item on the balance sheet that is easy to tackle is labor costs, not revenue or profit. Your customers aren't going to buy products from you because you gave a raise to your janitor instead of replacing them with a roomba (relax, its a joke :P). The China/Walmart economy is here to stay. For retail companies, the only growth markets that you can sell into are the developing world markets around the world. These are also the companies your retirement funds are invested in, unless you don't want your savings to grow. If every country turned protectionist, it will trigger a massive economic depression. I suppose we'd come out of it eventually, if global warming doesn't kill us first :)