econ 004 group 52 power point

econ 004 group 52 power point - Free Trade and NAFTA (pro)...

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Free Trade and NAFTA Free Trade and NAFTA (pro) (pro) Group 52 Group 52
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Cartoons Cartoons
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This shows that free trade helps to create jobs and income. It also creates social welfare for all. In the cartoon above, the people are discussing many of the benefits of having a free trade economy.
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NAFTA helps us get the things we want much more easily and at cheaper prices. The picture above shows that we receive prescription drugs from Canada, as they receive arms from us. Although these may not necessarily be legal commodities, we are all getting the goods we want at prices we can afford. NAFTA essentially makes these goods more readily available and cheaper.
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The invisible hand theorem states that each of us want a bigger piece of the pie. Since we all want a bigger piece, the pie grows, which maximizes social welfare. This maximization of social welfare is one of the positive aspects of free trade and Adam Smith’s ideology. The cartoon above connects Adam Smith, and therefore free trade, to this theorem.
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Adam Smith believed that a laissez faire (hands off) approach to the economy would be the best and most beneficial. One of the indexes of economic freedom includes fiscal freedom. This means that government should keep taxes very low. When taxes are too high, the economy doesn’t do as well. In the cartoon above, the tax department is portrayed as criminals that got to the business owners money before the actual robbers.
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This cartoon shows once again that over taxation is death to free trade and to the economy. It is a violation of fiscal freedom. Governments should practice laissez faire economics and cut back on taxes in order to jumpstart the economy. Taxes are necessary for a government to run, but too much taxation is not good for economic freedom.
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Pictures and Graphs Pictures and Graphs
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NAFTA (North American Free Trade Agreement) promotes free trade amongst America, Canada, and Mexico. This picture depicts all three economies as one. NAFTA greatly reduces the majority of tariffs associated with motor vehicles, computers, textiles, and agriculture. This encourages more open trade between the North American countries.
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GDP greatly increased and overall economic prosperity increased as well. Total trade also increased.
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econ 004 group 52 power point - Free Trade and NAFTA (pro)...

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