January 30, 2017
The president has proposed that the big wall at the southern border should be funded by imposing a 20 percent tariff on all imports from Mexico.
Let's think about that a bit.
I totally agree with the overtone of the president's proposal — let's get someone other than American citizens to help fund the wall (and other migration enforcement activities). To some extent a tariff would do that, but it would lead to higher prices to Americans for products made in Mexico.
But the significant by-product of such a policy would be a less prosperous Mexico — and when that happens illegal immigration increases. Read more...