I just listened to Michigan’s governor ranting about the outrage that Ontario is now manufacturing more cars that her state. This, she said, is proof that NAFTA isn’t working. It must be reformed.

But, Madam,

The southern U.S. now produce more cars than Ontario – far more – Kentucky, Alabama, South Carolina, etc.

Will changing NAFTA, change this fact?

The Democrats are in a bind in this Presidental year, IMO. In order to secure the working class, they are jeopardizing just about every other class. NAFTA is not perfect but the facts show that it sent lower value, lower wage jobs to Mexico and created higher value, higher wage jobs in the USA.

I am not saying there wasn’t displacement. It is still being felt in Michigan, et. al.

But, on balance, the return to Lou Dobbsian protectionism will be a major step back.

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0 Responses to NAFTA SCHMAFTA

  1. Anonymous says:

    I do get letters and e-mails and things from neighboring states that remark on this contrast, and so forth, so anyway. On the subject of trade, Susan Schwab was one of the presenters and gave a very good presentation, pointed out among other things that since NAFTA, manufacturing output in America has more than doubled. So among her messages was, whatever problems you may be experiencing don’t have anything to do with NAFTA.

    But the governor of Michigan took exception to that, and in what I thought not very persuasive terms, attempted to lay the problems of her state on that. I didn’t say anything…there’s no point in that place, or any place, I guess, to have an argument about it. But there’s nothing about Michigan that doesn’t apply to Indiana, too. And yet we have made economic progress. It leads you to think that there are other things, other variables involved, like tax, and costs and regulatory policy and so forth.

    You mean this frank?

  2. mikel says:

    Actually, there is no evidence that NAFTA created ANY ‘higher wage jobs’. Just because a new industry pops up doesn’t mean its because of NAFTA. Often its contrary to it.

    But you are forgetting one basic fact about american politics-and thats that the ‘working class’ doesn’t take part. We are talking about a population with an even lower turnout than Canada, usually hovering around Ontario’s mark of 55%.

    THIS election in particular has ZERO to do with working class issues, unless the two independants can get more media attention and grassroots support than currently. But by far its being fought on the ‘ideology’ of the parties, which is odd because as far as policy goes the democrats are no different than republicans, like last election they simply say ‘we’ll do it nicer’.

    Even though their economy is tanking we haven’t heard hardly a mention of economic policy, so much so that that is the main reason Ralph Nader said he was running-to try to get the democrats to at least acknowledge working class issues.

    It’s actually good to hear an american talk about NAFTA, in Canada the proof is even more clear that its been FAR more damaging to the economy than previously thought. With the high dollar manufacturing jobs are leaving the country in droves, which like the states leaves an entire class with nothing to do but get a job at Home Depot.

  3. nbt says:

    You’re right, David. There is no better way to uplift a region or country than through free trade. However, they [US] made their own bed with the current immigration debacle.

    It definitely needs reformed. Amnesty is not the answer, but sending millions back across the border isn’t as well. They need to look at eventually phasing in these illegals as full fledge citizens. Maybe set a longterm date?