This week's blog will focus on international economics and specifically with the United States' current trade embargo with Cuba.
Please read the article below about the possibility of easing restrictions of trade with Cuba.
Once you have read that,answer the following question: Should the US lift its embargo on trade to Cuba? Please use economic terms (comparative advantage, trade gap, GDP, etc.) in support of your argument.
Due Sunday 3/21 @ 8pm
Posts
I believe that the US should lift its trade embargo with Cuba; it was primailily because of the fact that the country went communist. But if we look the spread of communism has mostly stopped and it isn’t really a threat to our well being anymore. Also our biggest trading partner China is also communist but we don’t set an embargo with them, why? We need them, this is just another example were our principles get thrown out because of our want. Also if we lift the embargo relations with Cuba will get a lot better and we may be able to change some of the ways they run their country. If we do begin to trade with Cuba then it will save Midwestern farmers a lot of trouble. In the article it shows how farmers still trade with Cuba, but indirectly through banks in other countries. If we let our farmers directly trade with Cuba then it will increase our GDP and increase our trade because the farmers would be able to sell more and make a bigger profit by selling directly to Cuba. This will help our economy in a stressful time. If we lift the trade embargo it will be like creating a new market to sell to and buy from. If we can buy their products instead of other countries it will create more competition and the consumers will get a better deal. This will help our economy because then we can have more money to spend elsewhere. Also it would make it easier to travel back and forth, to visit families and to take vacations. It would increase their tourism as well. It would make it a lot easier to get their instead of lying to the government. And if you are found out then you are possibly facing jail time. This is a huge hassle and a waste of taxpayer money that could be spent elsewhere. In my mind I can’t tell you why we still have an embargo against Cuba. I have no ill will toward their country, they are a very close country to us and I feel that it would be beneficial to both parties if we get along and be friends again like back in the old days.
ReplyDeleteI am not really sure if the US should lift its embargo with Cuba because according to this article, it seems like it would be a good idea for the farms, and overall good for the American economy, but this article, in a way, makes me feel that Cuba cannot be trusted. I think that if we started to trade with Cuba, it would be very beneficial for us. I think that one of the reasons that this would be good for us is that we would have a comparative advantage with Cuba. I think that we would have a good comparative advantage because we would be producing a good (in this case the crops from the farmers), at a lower opportunity cost that Cuba, because we are able to produce more crops than Cuba can because we have more land to harvest the crops at. This will also be good for our GDP because if we did trade with Cuba, more of the farmers will shift them into higher producing activities and our import prices will fall comparative to Americas export prices. One of the reasons why I don’t think that trading with Cuba would be a good thing because it seemed that the article hinted that the US doesn’t really trust Cuba. The relationship that Americans have with Cubans is not a healthy relationship and I think that it would not be a good thing because you never know what will happen what some of the Cuban people will think of this. You can’t be to sure that they will agree with this and you will never know how they will react with this. I think that overall this would be a good thing for the US but I am not sure how the Cubans will react to this because of their previous relationship.
ReplyDeleteIt is hard to say if we should trade with Cuba because we only have one half of the story. According to the part we have, it seems like we should trade with Cuba because our farmers would benefit from such an agreement. Also, we probably have the comparative advantage in growing and selling crops compared to Cuba’s other industries, but my problem is the only thing I can think of trading with Cuba is cigars. Trading is about dual benefit, and if the Cubans are not going to get anything from this deal, then why should we even bother wasting efforts on removing the embargo when we have other issues to be dealing with right now. Also, my fear is that Cuba would not be a really beneficial place to trade with because of historical background. I fear that one day, the communist system in Cuba will fall apart and then so will their economy, just as the economy in Russia had faltered after the fall of communism, and Russia had suffered hyperinflation and an economy which was dominated by the big business oligarchs. We do not want to be so dependent and intermingled in Cuba if we have these fears because they will just add to our problems rather than resolving them.
ReplyDeleteThe other thing is that we should have a favorable balance of trade, which means we should not have a trade gap emerging, so this might be beneficial to us. We have become so dependent on the goods of nations such as China that soon enough I feel that we will just become a territory of China. A large chunk of our debt is owed to China, and that means we have to be careful of this balance of trade, so maybe removing this embargo might be a good thing. Also, it might help relieve the increasing use of complicated methods to trade. I am not sure if this would be considered black market, but I am pretty sure that at a certain point, the trade of goods with Cuba will become illegal because more and more people will find different ways to open up trade with the country. We have to be cautious of that. If we trade through our own country, our GDP would definitely appear higher than it is right now. By going through different countries, we are helping their GDPs and hurting our own. While we have the absolute advantage in production of many goods compared to Cuba, I feel we have to start specializing and finding a more favorable balance of trade with many countries to improve our economy and protect us from becoming dependent to one country. From just the perspective of America, I feel we should open up trade with Cuba with caution, and not become dependent on them.
I honestly don't have any interest in the Cuban trade embargo debate and I could really go either way on this. Some reasons we shouldn't lift our trade embargo with Cuba yet include the fact that Cuba is just coming off an abusive dictatorship with Fidel Castro and now that his brother is in charge I don't feel that country changing for the better any time soon. We shouldn't really consider lifting the embargo until Cuba shows some signs of reform. At the minimum they need to free all their political prisoners, let all cubans have equal access to their hotels, beaches, and other facilities, have democratic elections, and have more than one political party. Also, when proposing a trade with Cuba it seems like we would have the comparative and absolute advantage in practically everything with the exception of cigars and rum. We learned at the beginning of the year that countries should trade when one has the comparative advantage in one good and the other country has the comparative advantage in the other good. Countries shouldn't trade when one country (being us) has the comparative advantage in both goods because that would be inefficient. On the other side however, ending the trade embargo with Cubs would bring in a ton of revenue to our country in exchange for American goods and our farming industry would really prosper. Farmers would be selling food to 11 million people in Cuba thus vastly increasing our exports, increasing our GDP, and chipping away at our debt. To help Cubans pay for our exports, its vital that they really open up to tourists world wide. I know this is very unlikely especially since Cuba has been completely isolated from the world for a very long time to go along with the fact that they are still communist and can't elect the leaders they want and need. Ending the trade embargo probably isn't happening anytime soon and thats probably best. Cuba and our own country have a lot of other problems going on that need to be put before this issue. We can put it aside for now but not for too long because with our growing debt to China, we might be forced to stop trade with them or give up some property to them. This is where trade with Cuba can be helpful because it would increase GDP and provide us with a steady cash flow that would really help pay off some of our debt with China.
ReplyDeleteI feel that from an economic point of view America should lift the trade embargo with Cuba. America has absolute advantage in food production and Cuba has it in its rum and cigars. Also, America has comparative advantage in food and Cuba has it in rum and cigars. This means that according to an economist Cuba and America should trade, it would benefit both countries. Trading would increase the GDP for both countries and theoretically benefit everyone. However, since this is real life not an economics textbook problem there are other factors that influence whether or not America should lift the trade embargo on Cuba. One reason not to lift the trade embargo is because American’s would not want to bring more alcohol and drugs into our country. A challenge with lifting the trade embargo is that until recently Cuba was ruled by a very power hungry dictator. Now, Cuba is ruled by his brother. If Fidel Castro’s brother is anything like him America should not open up trade with Cuba. By trading more with a communist country we would be expanding their economy and helping communism grow. Helping communism is something that America has been against for years and by trading we would be going against this belief.
ReplyDeleteIt seems to me that the trade embargo with Cuba does more harm than good. Cuba doesn’t seem to be much of a threat as it has in the past, and even though they are just recently coming off a communist regime of Fidel Castro, I don’t believe this should stop our trade with them. Cuba is a place that we as the United States could make a huge profit off of. They are in need of food like wheat that farmers here can easily make large revenue from. By not trading with Cuba we are ignoring a place where we could, as a country, make a lot of money. If we traded with Cuba, our exports would increase greatly, also increasing our GDP. In response to Will’s post, we would in fact have absolute advantage in nearly every good, however when comparing two goods, a country cannot have comparative advantage in both. That’s why it’s called comparative advantage because it is relating the cost of one good to the cost of the other good. We should obviously trade with Cuba only if we have the comparative advantage in the goods we trade. I don’t believe that just because a country doesn’t get along with ours that we should stop trading with them completely. It’s not like they’re going to turn the wheat they buy from us into a nuclear weapon. We should trade with Cuba because it would increase our exports, GDP, and help decrease our deficit.
ReplyDeleteI am really not sure whether the U.S. should lift the trade embargo or not. Who know if Cuba will be able to keep their side of this and be fair after all they’ve been through. It seems if we did remove the trade embargo it would benefit us very much. If we did, we would both have comparative advantage in a good and would be able to trade for the benefit of both. The GDP would also increase with however much we got from the exports minus how much the imports cost. I do believe that with trade from Cuba we could benefit very much and also it would make our connection with them stronger and we might be able to help them when they have problems. The article also said how if we removed the embargo there would be more tourism to Cuba and with that tourism they would be able to spend more money on goods from the U.S. It would greatly benefit the farmers who are having trouble in these hard times right now and benefit the U.S. as a whole. Overall I think that we should take the chance and lift the embargo so we can benefit from it and maybe even help them.
ReplyDeleteI do not think that the trade embargoes should be lifted off Cuba, mainly becuase it will increase the price of the same crops in America. When US farmers sell their crops in Cuba, they are doing so because they have an excess supply of the crops, and they can sell them at a higher price there. This raises the price in the US because producers would rather sell in Cuba where there is excess demand above the current US price. When producers choose to sell in Cuba instead of in the US, they are increasing the price of the crop, and are hurting consumers. Although producers benefit from this increase in price and market size, consumers lose out, and must pay more for these crops. The more the producers are allowed to trade, the more the consumers lose out. US farmers have the comparative advantage in these crops, but that does not necesarily mean that they should trade. Real GDP will not show any growth from the exports, becuase consumption will decrease with the increased price level. Trade emargoes should not be lifted becuase if they are, the consumers will be hurt economically, and the producers in Cuba will also be hurt. The US will not be any closer to climbing out of this recession, despite what the article says, and Cuban consumers will become dependent on us, which will not be good if they ever return to communism.
ReplyDeleteI agree in the idea that the United States should end its ban on trading and traveling to Cuba. We stopped because the country turned Communist under the leadership of Castro. But he’s not in charge anymore, his brother is. Also, China is a commie country too, but we trade and import a lot from them. Like a high school couple, the US has been fighting Cuba for so long they’re starting to forget why they were mad in the first place. If we allow importing and exporting between us and Florida’s neighbor Cuba, then we could benefit by an increase in our GDP because then we could make money for the stuff we export out to them. We’d be benefiting from doing trades with them because Cuba is a prime market for us to trade with. Because we are the only (stubborn) country that doesn't trade with them, we are missing this opportunity. Instead, Japan, Canada, and Mexico are doing lively business down there. The effect of the embargo has forced their natives being the Cuban people to hate our government. Our trade gap would benefit it also since we’d be exporting even more, making more money, and lessening the hateful eyes Cuban people have on us. So yes, I do believe we should end the embargo and start trading with the Cubans. After all, they're not that far away.
ReplyDeleteThe trade embargo on Cuba should be lifted. Even thought there has been a few rough patches with Cuba trading with them can benefit us. Besides that point Castro is not in office, so we do not need to worry as much if we lift the embargo. We will have absolute advantage over them in almost everything except rum and cigars. Although there are many good outcomes lifting the law might result in us having more problems with drinking and cigar usage because it would not be as difficult to get them, so the supply on cigars and rum will go up causing the price to fall a little. We also will have a better comparative advantage because we have more to work with. Wheat is one thing we would probably trade, and we definitely produce a lot of wheat. But the article did say that Cuba would have to pay cash for whatever they trade with us , so that guarantees us a safety net sort of because we will not have to be worried about not getting our money. In all trading with Cuba can benefit our country, and maybe help us with our problems.
ReplyDeleteI am stuck on whether it would be worth it to end the trade embargo. I think we should end the trade embargo with Cuba based on the fact that, right now, we need to do anything to boost our economy. However, I think we have the comparative advantage in crops, but I don’t think Cuba actually has a comparative advantage in anything because cigars and rum can barely be compared to crops as essential. If the embargo ended we would be able to boost export sales and relieve some of our national debt, and increase GDP. Moreover, Cuba would be able to pay for our exports because of their beaches and casinos and the tourism we would supply. It would the boost the Cuban economy because people would be able to get jobs and there would be a steady flow of money. On the other hand, it seems that we have both comparative and absolute advantage, and, as we’ve learned, countries trade when one has the comparative advantage and the other has the absolute advantage otherwise it is ineffective. Since Cuba really is not exporting anything other than rum and cigars to America, they are not benefitting as much as we are. In this case, I don’t think the trade embargo should be lifted because it would just hurt American consumers because producers would probably raise the price because they know that they are already selling in Cuba and anything on top of that would be great. American producers benefit because they can expand their market and raise the prices. I don’t think the trade embargo will actually be lifted because if it has taken President Obama this much effort to try to get a healthcare bill passed, then I’m pretty sure supporters of an end to the embargo are going to need a whole lot of momentum to persuade the House and the Senate.
ReplyDeleteI think that if the United states is thinking about lifting the trade embargo to help the economy they defiantly should. Cuba is a nation of 11 million people and is close enough for easy trade. Farmers here would benefit greatly from the business of these people. Right now farmers can sell goods to Cubans, but they have to go through a foreign bank. This makes trade very difficult for the farmers. If the trade embargo was lifted it would make trade easier and allow the farmers to trade twice as more with Cuba. This would allow farmers to lower prices in America because they are making more money other places. This would also allow us to decrease our national debt a small amount. These things are all good for our economy, but there are also questions about how reliable Cuba is. They have always been reckless under the Castro regime. If we give them an in on the US then bad things may happen., but can we afford to not take advantage of a economic opportunity in these days. I think that the benefits outweigh the costs of lifting the trade embargo. Sure there is a risk, but it is worth it if trading with Cuba can help kick-start economy. As for travel, I still am hesitant to allow US citizens to travel to Cuba. It is to dangerous to put our people into that country and we are looking the help our economy not theirs. It is alright to trade with them and risk the danger, but to risk the danger with no help to us doesn’t make any sense.
ReplyDeleteObviously, I am going to be a bit biased because my grandparents escaped shortly after the mentioned 1959 revolution. I do not believe the trade or travel embargo should be lifted. Although free trade does help nations in the long run, it will not help Cuba, it will just empower it leader, whoever that may be in the future. We have been studying the benefits of trade, and as long as one nation has comparative advantage in one good and the other nation in the other good, it’s all good, right? What we don’t talk about in class is that whenever Cuba makes money off of something, be it trade or travel, we would expect the revenue to trickle down, but it doesn’t. It sits at the top so the members of the Communist party can live the high life, but the people living there get nothing. Their government doesn’t even give them aspirin—how can we expect it to bestow the benefits of free trade upon its people? In that case, lifting the trade embargo has economic benefits for our nation, but not for theirs. In my mind, this does not justify it. Another thing we talked about was how if, say we bought sugar from them, it would be good for their producers, especially if their wages were lower before. But we are, using this rationale, forgetting one very important aspect: the producers would not make this extra money. This is the very fiber of Communism and Marx would be rolling in his grave if one kind of producer made more money than another. The government would declare “from each according to his abilities and to each according to his needs” and take the extra money for itself and squander it on rum or cigars or something equally as useless. So, every aspect of this international trade that we have learned in class falls flat when applied to this discussion. I cannot see how this trade could possibly benefit both parties unless Cubans hid on the boats and came back here with the cigars, rum, sugar or whatever we are proposing to buy; this is why I do not believe we should lift the embargo.
ReplyDeleteThe U.S lifting its embargo on trade with Cuba will be a good thing for our country for a number of different reasons. Obviously we have a large debt to china, and china is producing tons of stuff for everyone which helps them out. If we can get that sort of effect even with a small country like Cuba it would be a good idea. If they start coming to us to get products because we have the comparative advantage in a number of goods it will ultimately increase our nation’s GDP. We will be producing more and creating more jobs because of the growing demand for goods form Cuba. When our demand as a country is down, it’s always a good idea to get demand from others if we can. Our trade gap will be better because we can start to export more goods, which is good for our nation’s economy. The important thing we have to keep in mind is that we don’t depend on Cuba if trading with them helps us out. They are not at stable country and they could easily fall. So if trading with them helps our GDP then horary but we cannot rely on them to always be a giant help. Another thing I would be fearful of is that if we create jobs because Cuba is demanding more of our products, if we ever loss their demand for some reason all of those job would then be laid off. That would trigger a big loss of demand for the U.S citizens and ultimately lead to a lower GDP. But all in all I think that as long as we are cautious and like I said not to dependent on trade with Cuba lifting the embargo will be a good idea.
ReplyDeleteI think that from an economic point of view, lifting the trade embargo with Cuba would be a good thing for America to do. America has absolute advantage in the production for food while Cuba has absolute advantage in rum and cigars. America also has comparative advantage in food, and Cuba has it in rum and cigars. With the absolute advantages and comparative advantages that are held as they are an economist would tell you that Cuba and America should trade because both would benefit from the agreement. Trading between the two countries would increase the GDP for both the U.S. and Cuba and, in theory, benefit everyone in the end. Plus, since they are close, it would be easy to trade with them. On the other hand, due to Cuba’s past and the U.S. wanting to have no part in Cuba’s communist government, American government does not want to fuel their country’s power. One reason not to lift the trade embargo is due to Cuba’s last harsh, power-hungry dictator. Now Fidel Castro’s brother has taken over the country and if his brother has any of Fidel’s traits, then America should consider keeping the trade embargo and continuing to not trade with Cuba. Also, some American’s would not agree with bringing more alcohol and drugs into our country from Cuba, since there is enough of that is causing problems here already. By trading more with a communist country we would be helping them to fuel their economy and helping them to gain more power. We do not want communism grow America has been fighting communism for years and trading with Cuba would be the opposite of fighting it, we would be helping it to grow.
ReplyDeleteIt me is seems that the trade embargo is hurting the American economy. Cuba doesn’t seem like much of a threat, if farmers from Minnesota want to sell Cuba wheat and corn we should let them. That trade increases our exports and increases the GDP, that will help us get out of this debt we are in. If we look closer at the trade the US have absolute advantage in just about every one except for maybe cigars. The US would probably have comparative advantage too; most countries trade with each other when one country has comparative advantage in one good and the other country has comparative advantage in another. So if the US has comparative advantage in both goods being trade we would be trade inefficient. But right now America is in a debt that we really in to get out of and we can not afford to pass this trade up. There are 11 million people in Cuba and if we can export food to them, there more money towards our economy and that’s going to increase the GDP. We need to follow the one simple rule of business in order to trade with countries and that’s leave emotion at the door. If we don’t agree with there government view point; who cares, because in business the only thing that matters is money. If the demand for a good is high and we have the good they need, there is a huge profit to be made. Business is about making money
ReplyDeleteIt has been fifty years since the trade embargo was put in place, it is time for that to be rid of. For the last twenty years or so, it probably has not been very necessary to still have the embargo set. So yes, I believe the trade embargo should be eliminated completely. I understand that certain issues have come up in Cuba with Americans and p[olitical issues; however, this may have never happened if it wern't for the trade embargo. But, one thing that did bother me was the article made it sound like we were conning the Cuban's by making a circle of money flow. That circle appeared to be American relatives give Cubans money, and then Cuban's spend money that goes to the USA. However, we must think as an economist. If our farmers were able to trade more with Cuba and make more money off of Cuba, GDP would raise, which means unemployment would decrease. In these times, that could be an excellent factor. Also, by ending the embargo, farmers would be able to cut there costs a little bit. Right now, farmers must pay extra money in order to go the round about way. Farmers must get the money from cuba and have it sent to France, then sent to America. It would be so muich easier for farmers to attain their money if the embargo did not exist. Plus, more American's would want to travel to Cuba because it would not be as much of a hassle and it would help the Cuban economy recover. SO in the end, ending the trade embargo would help Americans and the Cuban ecvnomy, even if a lot of their money was going to America.
ReplyDeleteI am in favor of lifting the trade and travel embargo on Cuba. In these recessionary times, it is good to tap into another market to fuel our economy. As people have less money, the demand for agricultural products is going down and farmers need somebody to sell their supply to. Instead of boosting that demand with government stimulus, or having their produce go to waste as the farmers go under, it seems much smarter to export that produce to a country of 11 million that really needs it. This way, the GDP in our nation increases with exports, and we don’t burn a hole in the Fed’s pocket. If you’ll notice, no one on either party refuses this when it comes to the Midwestern farmers who are most affected by this. The struggle comes when theses legislations hit Congress. Congress refuses these acts because it thinks this will empower the communist regime they have been against for half a century. Allowing free direct trade between the countries helps us gain more profit without getting it shaved off from outside banks and allows our producers to gain increased profit from their excess supply. Permitting travel to Cuba is also a good idea instead of the lying to the government and corruption that goes on now. We should be able to capture Cuba’s market and give them tourism so the Cubans can continue to purchase our products. I do however, believe we should restrict imports from Cuba. Although they do have comparative advantage in goods such as cigars, sugar, and rum, importing from them will hurt our GDP and the suppliers of those goods in our country. It may decrease prices for our consumers but in the long run our economy will grow weaker. In conclusion, I don’t think Communism is as big as a threat to our country as our producers being unable to sell their hard work’s crop and the national GDP decreasing.
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ReplyDeleteI’m on ends with this decision. I think that it would be greatly beneficial for the United States to lift the trade embargo on Cuba because it would help both economies greatly. I feel that since Castro is not in charge that there are less chances of something going wrong. We should trust those 14 million Cubans a little bit more and trade with them. We would still have the absolute advantages in everything we trade except for rum and cigars. The US farmers would also see a significant increase in their sales and that would overall benefit our GDP. This could possibly help the US economy and maybe help us return a lot of our growing debt to China.
ReplyDeleteOn the other hand, this could also be very detrimental to our somewhat of a relationship with Cuba. Cuba gets nothing out of this trade. The United States gets the absolute and comparative advantage in pretty much everything in this deal. Our farmers and producers are going to benefit a lot. Inversely Cuba will get nothing out of this. They will just get more goods but none of which will help them in the long run.
For the traveling issue, I think it’s based on personal preference. If US American’s want to put themselves in danger and go to Cuba then the US shouldn’t stop them. American’s are already risking a lot by just going to other countries and then going to Cuba. So if they just want to go directly we should just let them.
I believe that the U.S should lift the trade embargo with Cuba. This trade embargo only insists because we do not agree with how Cuba’s government runs their country. Even though we do not trade with Cuba, on of our biggest trading partners is China, another communist country. If trade exists with China I don’t understand why trade with Cuba is prohibited. I think the trade embargo is just a way of America showing that they have a lot of power, and they will get what ever they want to get. If we lift this trade embargo it would be beneficial to not only our country, but the country of Cuba as well. Their economy will become better and at the same time Cuba will begin to trust the united states a little bit more, and will eventually end the feud between us. America has absolute advantage in food production and Cuba has it in cigars and rum. As well, America has comparative advantage in food and Cuba still has advantage in Cigars and rum. This shows that trade between the U.S and Cuba would be beneficial to both countries. Some people think that lifting the trade embargo would say that our country supports communism but this obviously is not true at all. Fidel Castro’s brother is nothing like Fidel, so I don’t think anything bad would come out of lifting the trade embargo only good things for both countries.
ReplyDeleteI believe that the US should continue its trade embargo with Cuba because the small population of people that would benefit from trading with Cuba wouldn't be worth it. Trading with Cuba would be first of all taking away from our economy because we would be exporting alot of goods but importing very few goods. Also, if we opened trade with Cuba it would introduce them to the world market, Cuba is a pretty poor country and therefore their price index is low, so if we introduced them to the world market the new world equilibrium price would decrease, and with that decrease our American producers would be taking in less while turning out more, ultimately beginning a chain reaction of higher prices and unemployment that would lead to inflation and a deeper recession. Everyone would be then hurt because a few small town farmers thought that lifting a trade embargo set by smart politicians would earn them a few more bucks, and it would, but with the inflation that would ensue they would eventually end up just losing real money because the value and spending power would be decreased.
ReplyDeleteIt is not an easy decision to make, whether to life the trade embargo with Cuba or not. On one hand, Cuba is a Communist country that since the start of Castro’s reign has not had the best policy with America (Bay of Pigs/Cuban Missile Crisis). However, we should not keep looking at the past when determining whether a country is an ally or not. For example, Germany was not an ally of the U.S. during WWII but now they are more willing to trade with and help us. So on the other hand, Cuba has a demand for crops that would allow our farmers to profit greatly and help boost our economy. The United States clearly has the comparative advantage in farming crops, and therefore it would only be a matter of finding out what Cuba would want to trade us so that we can have both sides exporting and importing the right amount of goods. As long as we don’t allow a trade gap to occur, the economy should become much stronger after the GDP increases due to the increase in sales made to Cuba. This could only help our nation, especially during a time of such great economic turmoil in millions in Americans’ lives.
ReplyDeleteI think lifting the trade restrictions with Cuba could be a good thing, but it could also be a bad thing. On one side, trade with Cuba would increase our exports, thus increasing our GDP and possibly lowering our debt, over some time. I would help open up a more vast market of trade and would allow us to bring in some more money. It seems, according to the article that it would be very beneficial for farmers. They would be able to sell more and bring in more revenue, also it would be easier than going through other countries banks, in order to collect their money. It would save time and reduce the hassle, that farmers are currently being forced to go through. However, trade with Cuba may not be such a good idea because of their current and past governmental issues. They still have many things they need to work out within their country and that is something we can just not afford to be involved in. Also, it seems that Cuba does not have much to offer us in terms of trade, except for money. We seem to have absolute and comparative advantage in most goods. Cuba does not have many goods that would be of value to us. Sure, they have rum and cigars but those are for personal enjoyment and would not be beneficial to the United States. I suppose it might be helpful to slightly reduce the restrictions between us and Cuba, to allow families to become closer to each other without all the difficulties they face, and possibly reduce the travel restrictions, so people don’t have to lie. If they want to travel to Cuba, it should be their choice.
ReplyDeleteI think that although the trade embargo may seem like a terrible thing right now because it restricts the money that can be made by us we have to look deeper at what would happen if it was lifted. The trade between our countries would be very profitable for companies, but for all of those people that have already lost jobs to cheaper work in China, India, and Mexico the situation will seem very similar. Cuba is a poor country with cheap work. If the embargo were to be lifted where do you think the big corporations would put their work? Right in Cuba where they can produce their products for much cheaper. An economics text book would look at the numbers and say that we should trade with them as we both have things the other wants and the book would say we would be helping our economy by trading. In reality with the jobs being sent to Cuba many of us would lose our jobs and only Cuba would benefit from the work. I think that lifting the embargo, while looking good on paper, would not be smart in reality, at least in this economic time when many of us do not have jobs in the first place.
ReplyDeleteI think America should continue its trade with Cuba. If we continue or trade with Cuba i think it will help America bring in money and could reduce our debt. According to the article it says that it would help our farmers a lot. So the farmers would be bringing in money. Trading with Cuba would increase our imports and exports, which would increase our GDP. The down side to trading with Cuba is our several issues in the past like the Cuban Missile Crisis which lead us nowhere. And even if we trade with them we really can’t trade a lot of stuff, they really don’t have stuff that we would want. The United States has comparative and absolute advantage in most of the goods. The only thing we really could get would be money. We could get cigars and alcohol but that really won’t help the people of United States at all. Overall i think we should trade because it could help us economically by increasing our GDP and reducing our debt slowly over time.
ReplyDeleteI’m not exactly sure if we should lift the trade embargo with Cuba, but based on the information in the article it seems as if it would be very beneficial to our country. The country of Cuba needs things that we can provide for them such as wheat and other crops. It would be very beneficial to the farmers who are looking for more markets to export to. If we were able to export a lot of goods to Cuba, I think it would help the deficit in America, because when exports are greater than imports there is a surplus. Right now we do not have that in America. It would help to increase the GDP if we allowed trade with Cuba. The United States would have absolute advantage in all goods probably, but each country would have comparative advantage in a good so it would be beneficial to both of us. But, as for allowing us to travel there, I do not see the point in that. It seems dangerous, and it will not help our country in any way. If it will help farmers, increase our GDP, decrease our debt, and increase our exports, I don’ t see why we should not trade with Cuba. Also, there does not seem to be as much tension with Cuba as there has been in the past, so I think it would be safe and beneficial to lift trade embargos.
ReplyDeleteI too believe that the U.S. should lift the trade embargo for the sake of the economy. We all know that our economy has its problems and we should take all the help we can get and I agree that trading with Cuba will help. The trading with Cuba seems to have a positive effect so far and by lifting the embargo we could have even greater effects. People do have their doubts because of the past history between the U.S. and Cuba, but these people need to realize that things are different now and stop living in the past. We need to take risks like these to try to get ahead, and if it doesn’t work then we can just go back to how things were before. The article talks about how ending the ban would help Cuba to get more money to buy exports from the U.S., both positives for us and them. The article also talks about how food sales in Cuba continue to grow, also a positive, so if we lift the trade embargo then I believe the sales will go up even more. Like others have mentioned, this will raise our GDP, give us absolute advantage in most things, but Cuba still has comparative advantage in some aspects that we will benefit from trade. All in all I think that lifting the trade embargo will help the economy, and that we should at least test it out.
ReplyDeleteI believe that the United States should end the trade embargo with Cuba for the main reason:
ReplyDelete1) Relieving the embargo will increase trade and profits. Relieving the embargo will increase trade because it will allow Minnesota to export agricultural products to Cuba and will provide an increase in the balance of trade. And an increase in exporting will reduce debt in the long run because GDP will rise and imports will not exceed exports by nearly as much. It will also increase demand for jobs to be a farmer because the current market of farmers in Minnesota will be flourishing due to increases profits and more and more of the unemployed will want to start farming.An increase in employment will alp the economy by providing more money for the government, from taxes, and an increase in interest prices as people will have more jobs and have more money to purchase things. So the pros beat the cons of relieving the embargo from Cuba because it will boost the economy.
I think that it would be very beneficial for the government to lift the trade embargo with Cuba because it would greatly help our economy. We obviously have both comparative and absolute advantage in food production and both nations would benefit from an increase in trade. Increasing our exports would greatly increase our GDP which would greatly help stimulate our economy as we still struggle with recession. Times are tough right now and we should take any opportunity we can to improve the state of the economy. The Cubans would benefit because if the ban on travel is lifted because it would also increase their GDP which consequently, would increase the US GDP even more. Although the Cubans do not have anything that we really want in return, we would benefit from the increase in GDP. Now that Castro is out of power, Cuba may be willing to change and it would be best if the government set old grudges aside in order to improve the economy. However, it is also understandable that the US is nervous to reopen communications with Cuba with their Communistic government. We do not want to stimulate their economy and help the spread of Communism but if we begin communicating with them once again we may be able to regain influence. However, with the way the economy is looking for us, it is very important that we capitalize on this opportunity. This is a prime opportunity to pull ourselves out of recession.
ReplyDeleteAfter reading the article, I guess you can go both ways with this decision. A reason for not lifting the trade embargo with Cuba is because I for some reason believe that it would all turn into one controversial problem in the end. Especially since we’re dealing with Cuba, which is not quite fond of the U.S., it would be a bit too risky. Referring to the previous relationship that America has had with Cuba, it seems as we feel that Cuba cannot be trusted. One minute they may be glad that we are helping them economically, but if for some reason something bad happens and it all falls apart, they are more than willing to blame us and who knows what they are capable of. However, if you look at it at and economical point in terms if it will be both beneficial for Cuba but most importantly the U.S., lifting the trade embargo with Cuba would be a good advantage. Right now our economy isn’t in the greatest terms and the fact that we need more money is pushing us to consider making decisions that are risky. First off, it would help farmers trading with Cuba a great deal. In the article it states that farmers do trade with Cuba, but indirectly through banks located in different countries. So if the U.S. decides the lift the trade embargo, farmers would be able the trade directly with Cuba which I believe would increase our GDP and trade as well because farmers would very well be able to sell more than usual resulting in a bigger profit. It would also help Cuba as well. Tourism would be a great attraction in their country and most definitely help out their economy a great deal. Both our countries are at a downfall and we must do what we can to better the economy. If this is one of the ways, then so be it.
ReplyDeleteI believe the trade embargo with Cuba was really set because of political reasons. Trading benefits everyone as long as there is a dual benefit on both sides. In reality, trading with any country should be a benefit economically, because there is always some good that is exchangeable between two countries. This is usually the case, and with Cuba it is the same. Economically, our country will benefit from trading with Cuba. The food/agriculture industry will surely benefit, in my eyes, the most. This is because the U.S. has a comparative advantage and absolute advantage in the food industry. Thus if we trade with Cuba, for example to get tropical fruits, then we will benefit. Our GDP will rise, therefore boosting our economy. But the economic reasons for lifting this trade embargo is not the most important thing on a politician’s minds. This trade embargo was set, in my opinion, because the U.S. did not want to help a growing communist nation, and wanted to hurt them in the process of setting a trade embargo. In my mind, it seems as if the trade embargo will not be lifted unless politicians give in and admit that they were wrong about breaking down Cuba with a trade embargo. Politicians fail to realize that we cannot stop Cuba from growing by having no relations with them. For decades this trade embargo has been in place and look at where it has gotten us: nowhere. Cuba keeps growing, the government keeps getting richer, and the Cuban people continue to suffer. I actually think that we are even hurting the people of Cuba because we are refusing to trade with them. We need to find a different approach in order to get through to Cuba and stop this dictatorship. For once lets not only think of ourselves and defending or beliefs, but also think about the Cuban people.
ReplyDeleteI think economically that the US should lift the trade embargo on Cuba because by not exporting goods to Cuba, it is hurting the farmers who are exporting and definitely hurt the 11 million people living in Cuba who rely on our exports for their daily food. Also, the US has absolute and comparative advantage in food manufacture and Cuba has absolute and comparative in rum and cigars so the US and Cuba should trade. It would help both countries and raise the GDP in both countries too. Thinking about it from a US citizens stand point, I don’t think we should trade because it would be a risky decision because Cuba is communist and if we do trade, communism could spread to the US and nobody wants that to happen because we are a very anti-communist country. Also it is bad because we have enough problems with alcohol and drugs already and by trading food for drugs and alcohol, it would just increase those problems. Also I do think that there is a chance if we do lift this trade embargo that Cuba will not go through with their part of the deal and the US will be out of luck.
ReplyDeleteI believe the trade embargo should be lifted because it would help the farmers. Yes, Cuba is communist and the government is getting all the money but, we trade with China. Also, I realize we can’t trust Cuba but, what are they going to do. They do anything hostile, were so close and so technologically advanced we could take out their leaders before they could run for cover. Anyway, the farmers would benefit by being able to do business directly with Cuba’s 11 million people allowing them to double their amount of trade right now. We would have absolute advantage in almost everything except rum and cigars and then they obviously have absolute advantage in some really good rum and cigars. With the economy as it is, we need all the trade opportunities possible. American farm families need all the income they can get. Also this will help our massive trade deficits. And speaking of trade deficits, we could possibly trade in such a way to increase Cuba’s trade deficit so that the communistic government would fail. The government could put a tariff on rum and cigars so we could still wage economic warfare on Cuba without hurting the farmers and our government would make money without raising taxes. Also, we are so close to Cuba that if the government fails like in Russia, we could easily help them start a democracy. Also, I think we should allow people to visit Cuba at their own risk, their doing it in secrete all ready; and as I stated before, if they do anything hostile the war would be over before they could say “I surrender”. I don’t think that would happen with Castro gone. With these economic times, the last thing on anybody’s mind is doing anything aggressive. Also, if the Cuban people see how much money people have in America (democratic) instead of Cuba (communistic) they might even want to over throw the government; and knowing how we love to get in to other countries affairs, chances are we would help. We have everything to gain from lifting the embargo and the Cuban government has everything to lose.
ReplyDeleteI believe that we should remove the trade embargo with Cuba because it will help our economy and our GDP. Some above say that this would increase the price of food in America because they would just sell it to Cuba for a higher price but I do not agree with this. The farmers had to go to foreign banks which increased the price of the crops they sold to Cuba and now with out having a middle man they can increase profits for themselves and not have to charge Americans anymore. Also Cuba is a very poor nation and probably would not pay ridiculous prices for our crops. We obviously have an absolute advantage in almost all aspects of trade and there would not be a real benefit for our nation besides for farmers and now Americans can travel there. Cuba’s tourism would boom and there economy would greatly increase and therefore the amount of food they would increase. Also since the Cubans have to pay upfront in cash for it, I do not see any reason to not supply them because there is no way for them to not pay us back. So overall I think it would be a good idea. While the benefits for Cuba seem to have a much larger impact on their country than on ours, I still feel that removing the trade embargo is a good idea.
ReplyDeleteI think that the trade embargo with Cuba does more harm than good. We shouldn’t stop our trade embargo because Cuba has not been a threat like they have been. Also, even though Fidel Castro is soon to be gone, it shouldn’t affect the relationship the US has with Cuba. Cuba is in need of food, which US farmers can provide. Thus, the US could make a big profit off of Cuba. By not trading with Cuba we are passing up an opportunity to make a lot of money as a country. If we traded with Cuba, our exports would increase by a lot, also increasing our GDP. We would in fact have absolute advantage in nearly every good. But a country can’t have comparative advantage in both goods. That’s why it’s called comparative advantage because it is relating the cost of one good to the cost of the other good. The US should only trade with Cuba if they have comparative advantage. Our country’s relationship with Cuba should not decide what we trade with them. If trading benefits both countries, then it shouldn’t be a problem. We should trade with Cuba because it would increase our exports, GDP, and help decrease our deficit.
ReplyDeleteI believe that we should trade with Cuba for many reasons that could benefit both economies. For example, the United States could trade things such as wheat which will increase exports for us and could pump more money into our economy. Especially with our economic situation today, this would be a good idea for today. If the United States later decides they do not want to trade with Cuba then we can cut them off again, but not until our economy becomes a little more stable. I agree with Sarah A that the trade could potentially renew our relationship with Cuba and could possibly lead to a strong friendship between the two countries. Also, I think that both countries should not be bitter about the things that have happened in the past and start anew. The US needs to realize that their spat with Cuba is actually hurting us in a way, if we start trading with Cuba then our GDP will rise and, again, we could potentially start to raise our economy.
ReplyDeleteI think that lifting the trade embargo with Cuba could go either way. From the articles point of view the embargo seems like it is holding back the economy, specifically the farmers. If the embargo were lifted farmers would be selling to a lot more people, increasing GDP and helping our nation’s debt. If we lifted the embargo we would probably have absolute advantage and be able to trade for the benefit of goods. Cuba would still have comparative advantage in some goods, which could help with trade. Our trade would increase and we would make a bigger profit. The only thing to consider is whether or not we can trust Cuba to honor the law and do what they say they are going to do. As far as traveling goes it may help bring in more money to Cuba, which may come back to the US, but if it's not safe then there’s no need to risk it. In the end I think lifting the trade embargo would be beneficial.
ReplyDeleteI think politically, it does not make sense to trade with Cuba, but if we're talking economically, which is at the time more important for the US than politics, it is necessary that we trade with Cuba. We need to increase the aggregate demand in order for GDP to increase and create more jobs. Although some might say that puts to question our political values, I don't think that an embargo is going to cause Cuba to change its mind about being communist because it never has, and probably never will. We need to focus on what is good for our country and not be too proud of ourselves to admit that we need their help, because we do. Although I don't think that it will solve our problems, I centainly think that a decrease in unemplyment could be a relief for thousands of people and it would check the recession. If both countries have comparative advantages on porducts, it makes sense that we trade with them instead of paying the unnecessary prices of producing the product ourselves and it would lower the price of production for companies. Also, I think the impact of the increasing tourism could also help the economy because it would increase the aggregate demand as well as trading would, and we should get all the help we can because we are in the middle of a crisis. Not only would we receive the money from tourism in the US, but it would increase trade with Cuba as well because they will be spending the money they earn from tourism on our products. Overall, i really think politicians should consider what is best for the country and put ideals aside when making this decision.
ReplyDeleteI think we should lift the trade embarge with Cuba because it would help restart out damaged economy for now. initially we stopped trade because of the cuban missile crisis and yes, another country aiming nukes at us is a legitimate reason to not trade with them but them being communist is not, because after all the country we do most of our trade with is communist, china. making trade more difficult for farmers is pretty ridiculous and if we can benefit and they can benefit, why not? trading with them will only increase our gdp and use comparative advantage to an advantage. with more cash flow and more people benefiting along with us benefiting from trade i do not see a down side to a lift in the trade embargo.
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ReplyDeleteI think the U.S. should lift the trade embargo with Cuba, partly based upon the aspects mentioned in this Minnesota newspaper article and because the 11 million people inhabiting Cuba depend on exports and the cash flow of imports. The farmers in the U.S. also depend on the revenue they will receive from their exports in food and other goods/services. This article seems to be pushing the reader to believe we should lift the embargo, but we must think of why we came up with a trade embargo in the first place. It mentions that since 2001 when the farms were allowed to export their goods, they have succeeded tremendously, and in 2008 we brought in about $710 million of revenue. Another prospect that we must look at which is also mentioned in the article is that if we do end this embargo, the tourism rate and economies, especially the GDP of both countries will be stimulated. The U.S. has comparative advantage and absolute advantage in food and other goods, and Cuba has comparative and absolute advantage in its rum and cigars. This in an economic viewpoint would be a “no-brainer,” of course we should end the trade embargo and begin trade again. That is what would make sense, but this will not be allowed by our government. The legislation doesn’t want to allow the importing of Cuba’s famous rum and cigars, which are currently illegal in America. So back to the revenue, without the incoming money to our farmers, they must borrow from banks. As we’ve been talking about in the past few weeks, this will yet again increase our nation’s debt and shove us in deeper with foreign obligations. So, yes I believe that we should lift the U.S., Cuba trade embargo that has prevented our farmers and Cuba’s rum/cigar companies from bring in another source of income.
ReplyDeleteFrom an economic point of view, the trade embargo on Cuba should be lifted. This embargo is an obstruction to U.S. producers, making them use banks in other countries to sell their products. This extra cost hinders them from producing as much, and cuts into their demand for goods due to the complication of exchange. if there was not a trade embargo on Cuba, producers would make more, which increases overall U.S. exports. Since it seems that the government still will not purchase anything from Cuba, our imports will not increase, which helps raise overall GDP of our nation. And since producers are saving money using banks within the country, there will be more production which will lead to more employment, helping us out in a big way during this recession. Regardless of political problems, lifting the trade embargo a bit can only help the United States.
ReplyDeleteI believe we should not lift the embargo on trade with Cuba. There would be a massive trade gap between what we would sell to Cuba. We would not buy back nearly the same amount of goods from them. Cuba’s exports are not much to offer other than cigars, tobacco, and sugar, and we already produce sugar and tobacco. If we sold them are excess crops, prices in the US would increase. This might be more harmful then it would be good to trade. The article said Cuba bought 52 million goods from us and if the trade embargo was lifted we could sell 50 percent more. This would add up to around 75 million. This compared on the large scale international trade is not that much. I personally do not know if Cuba or the US has the comparative advantage, but even if Cuba has the comparative advantage I have no idea if it would help if we were able to trade with them. Emily Cullum also has a very good point that the free trade would just give more power to the leader, Castro and cause more trouble for the lower class people of Cuba.
ReplyDeleteIn my opinion I believe that if we decide to keep the trade embargo enabled then our economy will suffer and the trade embargo will prove to be a lot less protective to the U.S. then if we disabled it. The absolute advantage between the U.S. and Cuba is heavily weighted onto the United States side. Although the comparative advantage is for farming and some other resources is on Cuba’s side. If we decided to trade once again with Cuba our economy will be a lot better off and the time we estimated the economy will be in uncontrollable debt will be delayed. The farmers will also prosper and when they are selling all they produce the inflation of crops will decrease and the citizens will be able to afford healthier foods and that will help control their health and from then on will help the economy. And as it was said in the article Americans tourism will help Cuba generate money and from that money they will buy from the U.S. Also people from Cuba will come to the U.S. and we will generate more money that way. So either way the money is coming back to us. The reason we did not want to trade with Cuba was because of the threat they posed on us with communism. But now they pose such a little threat compared to us that there is nothing to fear from them, but instead they would fear us. This will also provide the United States with another military ally.
ReplyDeleteIf we really want to help the economy, which is in great need, we should throw away our pride complete lift the embargo with Cuba including Imports from their nation. If we allowed Cuba to make a profit off of their cigars and rum which the US has and extremely high demand for constantly, as mentioned in the article, imagine the amount of exports that they could afford to purchase from us. This would benefit both nations and there really is no reason for the embargo other than bad blood between countries. The US restricting trade in one the few places that value our exports isn't exactly logical. GDP could potentially skyrocket with the embargo being lifted and I believe that the US and Cuba should have a restriction-free trade market to better both nations.
ReplyDeleteI believe that we should remove the trade embargo with Cuba because it would help U.S. farmers. The U.S. is dead last in exporting goods and this could really help us export goods to Cuba. This would benefit our economy in times when we need it most, and it also benefits Cuba by importing goods and resources from us. This would pump money into the economy and jumpstart it back People might say that there are communists and that America does not help communist nations, but we currently trade with China and nobody complains about that. Also this will help both nations have better commutation and become more friendlier neighbors. By removing the embargo it could mean more than just economics but a more less tension between two nations that have not been friends for quite some time. And by the way who does not want a Cuban cigar?
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ReplyDeleteI believe reversing the ban would be a bad idea both economically and politically.
ReplyDeleteEconomically speaking, releasing the ban would mean we would have less supply, and less supply means higher prices. Yes producers would benefit greatly from this and that is why the farmers are very vocally in favor of this. But what do consumers have to gain from this? They lose out because the prices of corn, wheat will get higher. It is not as if farmers are completely banned from trading with Cuba, they still have the opportunity to do that. They need to not be completely selfish and hope the bill gets passed so they are the ones that get higher profits while the rest of America suffers.
Also politically speaking, communision is different from captialism. The government will not allow the lower class to receive the benefits from this trade. Life from them will be the same regardless of this trade except there will be a higher supply of food which the government will sell to the people. They might even not decrease the prices because the government probably acts as a monopoly and sets the market prices, meaning the government would get higher profits which would not belong to the people.
Also vacation wise, people can travel to any other Caribbean country. There are tons of islands belonging to non-Communist countries available for people to travel to other than Cuba. Also because it has been closed off from the US for such a long time now, we don't know how safe it is to travel there. I don't understand why anyone other than Cubans who have been separated with family members because of the revolution would want to go there.
So unless you are a member of Cuba's communist government or a Midwest famer, I do not believe anyone should support lifting the ban on the trade with Cuba.
I believe that it will be beneficial to both Cuba and the US if we lift the embargo with them. According to the article, farmers will “greatly benefit from access to new markets in Cuba at a time when our economy needs it most”. Where do we get the majority of our food? That’s right, farmers! So whatever the farmers say they need, we should provide them with it. If it’s lifting the embargo with Cuba, so be it. The farmers know best what would be beneficial and there’s no reason that we should have to stop that. Also, looking at it from an economist’s viewpoint, the US has a comparative advantage in farming so as long as we trade the right materials, it should benefit us in the short and long term. Not to mention that the GDP will increase and could possibly help us with the recession. All in all, I believe that lifting the embargo with Cuba will benefit our economy and theirs as well.
ReplyDeleteI think that the US should continue to lift its trade embargo with Cuba. We have the comparative advantage for farming crops and Cuba has the comparative advantage in cigars and rum and the trade would be beneficial for both countries. Their demand for crops would allow our farmers to profit significantly and it would improve our economy while raising our GDP. Our farmers could sell more and make a bigger profit by selling directly to Cuba. Then we would be producing more and creating more jobs because of the raising demands for goods from Cuba. Also, this would help out our national debt with China a little bit. Also, our trade gap would benefit too. Plus, this could help us in the recession. I believe this will also help our country and Cuba to become friends once again and stop this nonsense. So overall the idea of lifting the trade embargo with Cuba is a good idea and I think we should go for it.
ReplyDeleteI believe that from an economical stand point the U.S. should lift the trade embargo with Cuba because we are already trading a little with them and the trade is very successful. We have been trading food with them since 2002 and that has done nothing but grow and become more successful. It does not make sense to stop something that has potential to be very beneficial to our struggling economy and increase our GDP. Trading with Cuba would also change prices down because there would be a larger supply, and therefore more completion. Politically though trading with Cuba would be a bad move. As a nation we say we are against communism, so why would we trade with a communist country? Now you might say then why are we trading with China? Well that is because we need china. They are our biggest trading partner and without them we would be worse off than we are. Ultimately, this is a decision that needs to be made by our government. If we trade, we could help our economy, but it would be bad for our political image. If we don’t trade we lose a chance to help the economy, but do not get any political bashing.
ReplyDeleteIn my opinion I feel that the US should not lift the embargo with Cuba because of the problems that the country is going through right know. Some people might say that because Cuba is no longer under Fidel’s Castro’s dictatorship they are better of but they don’t know that the brother is the one in charge right know. So that basically means that there is no big change over there. And when we talk in depth about many things I feel that we have a comparative and absolute advantage in a lot of the things that we trade with them so its for the better of us. But going back a really good point that we touched on in the beginning of the year when one country has comparative advantage on both good then it is no efficient for the countries to trade so I don’t know how bad that is going to hurt us. But after all I feel that the embargo is doing a lot more harm than good to our country switching my first though and know feeling that we should lift the embargo from Cuba.
ReplyDeleteI believe that the U.S should lift its trade embargo with cuba for many reasons. first of all, it is already profitable, even though it is so difficult to trade with them. and the market for agriculture would only make more money if the embargo was lifted. i also think it would greatly benefit both the U.S and Cubas economy. we could export our goods to them, which would result in more jobs and money coming in to the country, and the demand for crops and other items would increase, along with the amount of jobs and an increase in demand for items that go into making the crops. and if we could receive cuban imports, it would provide us with goods and services that we may not have been able to obtain beforehand, which would increase theyre capital, and increase the demand for their goods and services. i also think the ban on tourism to and from cuba is a bit rediculous. as the article stated, tourism would give cuba the funds they need to function properly, and it would allow them to buy our exports, therefore bringing more money into the U.S, which would result in more jobs, and a better economy. (also a more friendly relationship with cuba)
ReplyDeleteIf you take politics completely out of the equation continuing a Cuban embargo makes absolutely no sense. One of the strongest parts of the U.S. economy has always been, and will continue to be, our ability to export agriculture goods on a mass scale. Cuba, a country in great need for the resources we can provide, could be like many of the other Caribbean nations that receive food. Now I don’t personally know how much this sector of exports makes up of our total GDP, but expanding to Cuba certainly won’t hurt the number. Right now the U.S. is importing heavily from countries like Japan and China, and we need to take advantage of the goods we still have a comparative advantage in terms of production.
ReplyDeleteTaking politics into account it does make the situation much foggier. But I think that if politicians thought a little bit harder, they would see the fact that expanding our trade possibilities could help get the ball rolling on shrinking the deficit as a result of a small trade gap. To let the individual firms in places like Minnesota or Illinois struggle in the current economy would not look good for the Reps in those states, so they really should push some sort of legislation in Congress.
I agree with many of those who posted before me that an end of the trade embargo makes the most economic sense for Americans as well as Cubans. A lot of the negativity regarding it is strictly political and American producers should not be made to suffer for the failings of our politicians at the international level. Especially in today's economy, local representatives should be looking for new ways to help struggling Americans and allowing trade with Cuba would lead to a huge increase in available markets. The increase would lead to a jump in national GDP. The issue with farmers right now is really that there aren't enough people buying their product, more than an issue with the prices. If farmers were allowed to cut out the complicated middle man, their production/exportation would be much smoother and more efficient. Some might argue that a lift of the embargo would encourage the hostility and gridlock that has characterized America's negotiations, or lack thereof, with Castro, I believe that our economic situation is a more pressing issue. And frankly, it has a much bigger impact on the lives of Americans today than do political debates.
ReplyDeleteI think that overall lifting the trade embargo with Cuba would be a good thing for the US. We have an obvious compartive advantage with trading crops. We need to take adgantage of that while we can. Right now we are importing heavily on goods from countries like China while farmers are stuggling to export their goods becasue of this embargo. Lifting it would eliminate the need for our farmers to have to go to other bacnks outside of the US in order to trade. If we lift the embargo our GDP will go up becasue of this increase in trade. Of course there are many poitical issues invloved and lifting the trade embardo could possibly make them worse or maybe make them better. That is a risk I think we should be willing to make. There are more possitives to this than negatives and the trade embargo should no doubt be lifted.
ReplyDeleteI personally do not believe that we should lift the trade embargo that currently exists on Cuba. Some of you who may know my beliefs are probably surprised at my view, but let me explain. Although I will admit that Cuba could potentially help the U.S. economy, I think the negative of dealing with a nation that almost brought the United States to war 50 years ago outweighs it. No offense to the Cuban people, but the current government is not something we need to be associating ourselves with. Because of Castro, the Cuban Missle Crisis almost escalated into a full scale war that would have wiped out the planet. Since Cuba decided to play with the Big boys, it deserves the consequences. Now, if the Cubans are truly unhappy with this, they should overthrow their government. Only then should the United States make an effort to deal with the Cuban Nation.
ReplyDeleteI feel that the embargo in Cuba is more of a political issue then an economic one due to small impact the nation has on the global market but this is an econ assignment and so I have to say something. Whether the U.S. should end the embargo on Cuba is dependent on how trade is opened. Currently we allow limited sales to Cuba but prohibit the importing of Cuban goods which is not a bad situation. It is like having a absurd tariff on a small nation with no ability to retaliate because they can buy our goods but we cant buy theirs. In truth we are big and powerful and can dictate trade with Cuba as we see fit YAY Imperialism. The article says that the American farmers want to allow more exports to Cuba which would help our trade gap, a drop in the bucket, as long as we don’t allow imports from Cuba. The way I see it if our nation is already killing people in the name of preserving life and oppressing people in the name of freedom then the exploitation of a nation again/more should not be a problem. On the other hand if we really want to expand American ideals to this nation the right thing to do would be the complete removal of the tariff which would increase the trade deficit because at the end of the day Americans can out consume any nation. Either way I don’t think it will have a large effect on the U.S. economy because as I said before the world is big and Cuba is not.
ReplyDeleteI feel as though this current trade embargo that we have with Cuba is essentially causing us more harm than good when examining it from an economic standpoint. Cuba is a nation of nearly 11 million citizens and could benefit greatly from our agricultural products they most definitely are in need of. Since America holds that absolute advantage when it comes to almost all agricultural crops, we would be able to be very efficient in our trading with their nation. This would help the farmers of our nation immensely because of that fact that they will have this whole new nation to ship their products too and really help out their whole industry. Even though Americans can currently send products to Cuba, it is a very difficult process. If this trade embargo was non-existent, it would be a whole lot easier for them allowing them to send more products there, and in due time, lower prices here in an attempt to help stabilize our struggling economy. So even though this situation would allow America to come out on top, Cuba is a very un-stable nation and America cannot rely on them for immediate economic improvement. Even though not reliable, there is no doubt that trade with Cuba will help increase our GDP as a nation with all of the back and forth trading of mainly crops that would be going on. Even though we may not agree with their morals, people can not disagree with the fact that we are struggling as a country and should do anything that we can to help turn our situation around.
ReplyDeleteI am of two minds when it comes to the trade embargo with Cuba. I think that one reason we should lift it is so people can trade and see their family again, and it would also show a good sign of relations with the new Cuban government. I also think that American companies would expand their profit their because of cheaper labor, but this would be a bad thing. It would be good for consumers that are untouchable in the work force, but the amount of consumers would begin to drop because the industries that can outsource to Cuba for cheaper labor will choose to do so, which will mean less jobs will be available for consumers, and I believe this would hurt the economy more than cheaper prices would. The trade embargo is a tricky thing, because if something happened like what happened to Flint, Michigan where a GM factory closed, it could hurt a lot more Americans and it would just increase already rich company owner’s pockets.
ReplyDeleteI believe that we should keep the trade embargo with cuba but only trade for necessary items. If we have absolute advantage in something and we trade for something else that we have absolute advantage in then the trade is not worth doing. If we can receive goods that are proportionally as helpful as the goods that they receive then why would we not trade. I've heard talk about Cuba's morals, if their morals are bad how does that effect our trade with them. The trade should just be looked at through an economic standpoint, i believe that morals only complicate the situation and that we should stick to looking for a benefit of the economy, as it needs it pretty badly right now.
ReplyDeleteTim Adornetto
ReplyDeleteMr. Janczak, Prd. 7
AP Economics
3/22/10
I think that the United States should end its trade embargo with Cuba. We should focus on whatever is best for our country, not holding back Cuba. Plus, the embargo was initially put in place as a means to stop the spread of Communism. The spread of communism has almost completely deceased and isn’t as much of a threat as it once was. Our concern, considering that the country is in an economic recession, should be to patch up our own problems and regain strength. It appears that trading with Cuba would be beneficial for farmers here in America. I think it is important to try and keep good relations with all countries regardless of political system. They might treat us with compassion later on if the world power ends up changing to a communist country. Our country is so far unbalanced on importing good compared to the few goods we export. Ending our trade embargo with Cuba would help to balance out this huge discrepancy and therefore boost the economy. We trade with China now despite them having a communist government. If we have a stance to not trade with communist governments, it must be a universal stance without exceptions. We need China, and therefore we need to open trade to any country that can help the United States nurse its economy back to health. Even though Cuba is a small country compared to which we have absolute advantage in almost all goods but they do have some higher comparative advantages than we do. If there is anything that can help the United States grow its economy, then that step needs to be taken. We should trade with Cuba because it will decrease our national debt, move us closer to having a favorable balance of trade, and raise our GDP.
This whole situation with Cuba is kind of a blur. Should we lift the embargo or just leave it? I honestly could care less. I think that Cuba is a troubled country who was just recently under the dictatorship of Fidel Castro. Now that his brother is in charge, I do not think there will be a big difference. I feel that Cuba will just mooch off of us. We have many goods and are able to trade almost anything, but I feel that Cuba has only limited amounts of limited goods. The United States is able to export agricultural goods because that is what the Cubans and other Caribbean countries need right now. We trade with them but we usually don't get anything out of it. I think that we have comparative advantages in many goods, so they are no good to us. Although I know that the United States has a very high demand for cigars, alcohol, ect from Cuba, I believe that all of our goods are not worth as much as their goods. Although, if the farmers trade and export their corn, wheat, ect than our GDP will increase. I am kind of foggy as to what we should do still, but for the most part, we should just refrain from interacting from Cuba.
ReplyDeletePurely from an economic point-of-view the US should lift its embargo on trade to Cuba. Trade only happens if it benefits both parties. Right now both parties are missing out on benefits of trade. There are comparative advantages to both parties in the trade as a prerequisite for trade to actually happen. Trading with Cuba would benefit both the US and Cuba because it would increase the GDP. An increase in GDP would then help both economies. We have the comparative advantage in wheat and farming so not trading is a loss of money we could be making off of them.
ReplyDeleteAlso on a political level the trade embargo with Cuba should be lifted. At this point Cuba is a minimal security threat to the United States. The benefits outweigh the costs in this case. At the same time trade gives benefits to Cuba which would help their economy. And that can possibly increase the spread of communism. So when it comes to the political level on whether or not to lift the embargo I’m not really sure. Although they are a minimal security threat it could start the spread of communism and that is against what the United States has fought for.
I believe that the United States should drop the embargo on Cuba. As stated by the article, lifting the embargo has potential to improve our economy. We, the United States against Cuba, have both comparative and absolute advantage when it comes to food production. This would increase our exports, increasing our GDP, thus help the economy. Right now, it should be a top priority to improve our economy. And combined with financial trouble our state already is in, those who have yet to feel the recession’s impact will run out of luck. And of course, it is already affecting the lives of hardworking Americans that are struggling to provide for their families. If we allow this petty political drama to intervene with something that can greatly improve our economy, the economy will only worsen. This is an opportunity to help our economy and millions of Cubans that we have no right to judge. We have only heard propagandized stories from anti-communist media and not the people of Cuba themselves. Which would be impossible nonetheless considering the embargo. By lifting this embargo we open the opportunity to improve our economy, help Cuban economy and therefore enhance the world’s economy. This of course, also has the potential to begin a new relationship with Cuba. And after Bush’s “let’s shoot every non-American” attitude, building new allies is also important.
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