Hypothetical: if Mexico were as economically prosperous as Canada would that be better or worse for the US?
If Mexico were as prosperous as Canada, North America would shift to a tripartite of approximate peer-competitors.
Would this be an economic boon for the US, providing a massive, high-consumption market for exports? Or would it prove destructive by dissolving the labor-arbitrage models that underpin the American economy? Are there other dimensions to think about?
Ultimately, would the trade-off of losing regional dominance for the stability of a wealthy, integrated partner leave the United States better or worse off in the long run? I am interested to hear about economists would think about this hypothetical.