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Tuesday, September 6, 2016

NAFTA a Disaster for US Workers-Yet Voters Still Support Democrats


 

Poor Man Survival

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Democratic Policies, Such as NAFTA Equal More Layoffs for US Workers

 
 
 
 

NAFTA has been a disaster for US workers yet voters continue to support the democrats who pushed the Act through Congress-Does that make Sense?

Since the year 2000, the United States has lost five million manufacturing jobs even though our population has grown substantially since that time.  Manufacturing in America is in a state of stunning decline, our economic infrastructure is being absolutely gutted, and our formerly great manufacturing cities are in an advanced state of decay.  We consume far more wealth than we produce, and the only way that we are able to do this is by taking on massive amounts of debt.  But is our debt-based paper economy sustainable in the long run?

Back in 1960, 24 percent of all American workers worked in manufacturing.  Today, that number has shriveled all the way down to just 8 percent.  CNN is calling it “the Great Shift”

In 1960, about one in four American workers had a job in manufacturing. Today fewer than one in 10 are employed in the sector, according to government data.

Call it the Great Shift. Workers transitioned from the fields to the factories. Now they are moving from factories to service counters and health care centers. The fastest growing jobs in America now are nurses, personal care aides, cooks, waiters, retail salespersons and operations managers.

No wonder the middle class is shrinking so rapidly.  There aren’t too many cooks, waiters or retail salespersons that can support a middle class family.
 
 

Since the turn of the century, we have lost more than 50,000 manufacturing facilities.  Meanwhile, tens of thousands of gleaming new factories have been erected in places like China.

Does anyone else see something wrong with this picture?

At this point, the total number of government employees in the United States exceeds the total number of manufacturing employees by almost 10 million

Government employees in the United States outnumber manufacturing employees by 9,932,000, according to data released today by the Bureau of Labor Statistics.

Federal, state and local government employed 22,213,000 people in August, while the manufacturing sector employed 12,281,000.

The BLS has published seasonally-adjusted month-by-month employment data for both government and manufacturing going back to 1939. For half a century—from January 1939 through July 1989—manufacturing employment always exceeded government employment in the United States, according to these numbers.

You might be thinking that government jobs are “good jobs”, but the truth is that they don’t produce wealth.  Government employees are really good at pushing paper around and telling other people what to do, but in most instances they don’t actually create anything except job strangling red tape.

In order to have a sustainable economy, you have got to have people creating and producing things of value.  A debt-based paper economy may seem to work for a while, but eventually the whole thing inevitably comes crashing down when faith in the paper is lost.

Right now, the rest of the world is willing to send us massive amounts of stuff that they produce for our paper.  So we keep producing more and more paper and we keep going into more and more debt, but at some point the gig will be up.

If we want to be a wealthy nation in the long-term, we have got to produce stuff.  That is why the latest news from Caterpillar is so depressing.  In addition to the thousands of layoffs that had been previously announced by the industrial machinery giant, it appears that a fresh wave of layoffs has arrived

Hundreds of mostly office employees received layoff notices at one of the largest Caterpillar Inc. facilities in the Peoria area this week, just as the company announced plans to close overseas production plants and eliminate thousands more positions.

A total of 300 support and management employees at Building AC and the Tech Center in Mossville this week received job loss notifications that included severance packages, 60 days notice and mandated Illinois Worker Adjustment and Retraining Notification Act letters.

During this election season, you will hear many of our politicians talk about how good “free trade” is for the global economy.  But that is only true if the trade is balanced.  Unfortunately, we have been running a yearly trade deficit of between 400 billion dollars and 600 billion dollars for many years…
 
 
 

What you won’t hear is how Pres. Bill Clinton sabotaged our workers with NAFTA or the North American Free Trade Implementation Act in 1993 which effectively destroyed thousands of US jobs.   The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico. The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico's exports to the U.S. and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out within 15 years.

 

NAFTA opponents – including labor, environmental, consumer and religious groups – argued that NAFTA would launch a race-to-the-bottom in wages, destroy hundreds of thousands of good U.S. jobs, undermine democratic control of domestic policy-making and threaten health, environmental and food safety standards.

NAFTA, or the North American Free Trade Agreement, was created 20 years ago to expand trade between the United States, Canada and Mexico. Its secondary purpose was to make these countries more competitive in the global marketplace. It has been wildly successful in achieving this. NAFTA is now the largest free trade agreement in the world. 

Why, then, is NAFTA so severely criticized? This success has come at a cost. One of the problems with NAFTA is that it's reduced U.S. jobs. A second disadvantage is that it has exploited Mexico's farmers and its environment.

Growth comes with costs, and NAFTA was no exception.  NAFTA is criticized for destroying half a million American jobs and lowering U.S. wages. In addition, NAFTA increases the U.S. trade deficit.

 


How did NAFTA contribute to these problems? First, NAFTA cost more than half a million jobs, as manufacturers moved to Mexico to take advantage of lower labor costs. The four states that suffered the most were California, New York, Michigan and Texas because they had had a high concentration of motor vehicles, textiles, computers, and electrical appliances industries. Lower wages in Mexico meant that workers in the remaining U.S. factories could not bargain for higher wages. Companies could now threaten to move to Mexico if labor unions negotiated too hard.  Ford Motor and Nabisco recently moved some of their operations in 2016, laying off US workers.

 

US firms what move operations out of the country also pay not US taxes effectively shifting the tax burden to what is left of the middle class and small business putting everyone at a disadvantage while strangling growth and pushing the United States to rank number 13 in the world in terms of entrepreneurialism [we used to be number one].

 

 

 

Yours for better living,

Bruce ‘the Poor Man’

 

 

 


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1 comment:

DAR said...

Do you think Democratic voters are smart enough to realize they're being duped? It's obvious to me they're pretty stupid as they keep voting for the same turds which keep like plantation slaves.