Originally posted by: dullard
Originally posted by: Kntx
What has gotten cheaper? Not food. Not gas. Not housing. That is probably three quarters of a working families expenses.
Specifically what major protectionist change are you asking about?
I'll try NAFTA. In the dozen years before NAFTA started, the CPI (inflation) went up an average of 3.72%/year. In the dozen years after NAFTA started, CPI went up an average of 2.53%/year. Notice how price increases were much less?
What about wages? In that period before NAFTA, wages went up an average of 4.33%/year. After NAFTA? 4.11%/year.
So, removing a bunch of trade barriers hurt wage increases slightly (4.33% - 4.11% = 0.22%). But it also cut inflation drastically (3.72% - 2.53% = 1.19%). We got smaller raises, but the inflation rate was slashed. Net effect is positive. Your turn, show us the data for another major protectionist change. Try posting the numbers of what happened after adding a bunch of tarrifs.
Also, I'd be really interested in knowing about the housing that we imported. :roll: