San Juan Mountains

San Juan Mountains
San Juan Mountains: Grenadier Range

Monday, January 30, 2017

King Donnie's Mexican Wall Scam

So King Donnie has finally come out and told us how he plans on forcing the Mexican government to pay for the wall he has ordered to be built along the Mexican border.  Let's ignore for the moment the fact that there will be at least a dozen functional tunnels underneath the wall, all escorting illegals into the Socialist Democracy of Amerika with ease, before he finishes building it.  Instead, for today, let's focus upon the lie our King told us about how the wall was going to be financed.
King Donnie, as everyone knows, proudly declared that he would build a wall and that the Mexicans would pay for it.  When asked how he was going to force the Mexicans to pay for his wall he told us to have no fear, the master negotiator was on the job and we would soon have an announcement.  Meanwhile, the Mexican president told our King to take a flying leap.  There was no way the Mexican government was going to pay for Donnie's Folly, he said.
Last week our King told us how he is going to pay for his wall.  Effectively immediately the King has declared a 20% tariff on all goods imported from Mexico.  Apparently our King is too stupid to realize that a tariff is paid by the people who impose it, not those who are subject to it.  Mexican exporters will not pay the 20% tax.  The 20% tax on imported Mexican goods will be paid by the importers.  Furthermore, no importer will pay that tax if he does not first believe he can pass it on to the consumers who purchase the goods he is selling.  In other words, Donnie's Folly will be paid for by citizens of the SDA who make the voluntary decision to purchase goods imported from Mexico.  Maybe you do not think that is such a big deal.  Let me tell you why it is a big deal.
  • Over 80% of Mexican exports went to the US in 2015, and the US imported $295 billion worth of goods from Mexico, accounting for 13.2% of all US imports.  Effective immediately, the price for 13.2% of imported goods in this country just went up by 20%.  Thanks King Donnie!
  • In fact, the place many Americans could feel the most pain just might be the supermarket. Not only does America’s largest trade partner for fruits and vegetables happen to be Mexico, but our southern neighbor is also the second-largest trading partner for all food products imported into the US. According to the USDA, Mexico exported $21 billion of food and beverages to America in 2015.  Goodbye winter fruit and vegetables.  Most of us will no longer be able to afford them.
That almost $300 billion in imports during 2015 reported above can be broken down as follows:
  1.  $75 billion in automobiles.
  2.  $63 billion in electronic equipment.
  3.  $49 billion in machinery.
  4.  $12 billion in medical equipment.
  5.  $11 billion in furniture and lighting.
  6.   $6 billion in vegetables.
  7.   $5 billion in fruit. 
  8.   $5 billion in gems and precious stones.
  9.   $5 billion in plastics.
If you use Colgate toothpaste you will find the price of clean teeth going up by 20%.  If you buy cars wearing a badge from a company domiciled in the SDA, you will now pay 20% more for that vehicle, if you can afford to.  Most of us will make the decision to not buy the car.  What do you think that will do to jobs in the SDA?  You might want to tell your King what his policies are doing to you. 
Not only is starting a trade war with Mexico a terrible idea, the new 20% tax on goods imported from Mexico conclusively proves that King Donnie is either an economic idiot (he does not understand who pays the freight when a tariff is imposed) or a liar.  Neither quality is a good one for a King.  On the other hand, both qualities are perfect qualifies for the King of the Socialist Democracy of Amerika.  Go for it Donnie!  Start a trade war with every country on the face of the earth.  That is sure to make Amerika great.

2 comments:

  1. I'm getting me a Bubba Watson jet pack, modifying it to carry another person instead of a set of golf clubs, and heading down to the border. I think a lot of Mexicans would pay good money to take a fly over the wall instead of floating in an inner tube across the Rio.

    Lancelot

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    Replies
    1. Mr. Link:
      Good to hear from you as always. You and I are "in the know" on this one. For those who want to be in the know, go here:
      https://www.youtube.com/watch?v=tpEkN1NdjKU
      MW

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