The North American Free Trade Agreement (NAFTA) was created on January 1, 1994. It is an agreement between the United States, Canada, and Mexico. This particular “free trade” agreement was supposed to spur an increase in trade, exports, foreign investments, wages and standards of living. Reduced migration and reduced prices for goods were also supposed to result from NAFTA. Unfortunately, no good has actually resulted from NAFTA.
Tag Archives: Manufacturing
Last Thursday President Obama called for a long-term investment in highway, port and other infrastructure programs during a visit to Wilmington, Delaware. Our infrastructure has been decaying for some time now. As we see bridges collapse and roads fail, we realize we must act now to rebuild and upgrade our infrastructure.
In the 1950′s, 30% of the American workforce was employed in manufacturing—almost one in three jobs. This country was a manufacturing superpower; we were the world’s richest and most productive country. By 1994, approximately one in eight Americans had jobs in manufacturing. Now only 9% of jobs in the United States are in manufacturing.
“Free trade” agreements have flung America’s import-door wide open, and the repercussions are disastrous. Our economy is suffering greatly due to the explosion of foreign-made products flooding in. These products are manufactured overseas for $4 per hour or less, or in first-world nations that protect themselves with a value-added tax – the modern tariff. At such a low cost of labor and with other protectionist measures we do not have, they represent unfair competition for American-based manufacturers.
Instead of fair trade, America has turned to “free trade” as its dominant trading policy. This is like turning from milk to gasoline in your drinking policy. “Free trade” has taken America from the world’s superpower to a second-rate nation and it’s getting worse. Here are eight ways in which “free trade” is killing our economy.