NAFTA is ending our tremendously successful era of manufacturing. Americans used to build it and sell it to Americans. We had a (gasp) closed society with tariffs on imported goods.(clearly isolationist thinking here)
People in third world countries are building our stuff for us in sweatshops which would make ours of the 19th century look like spas.
View Quote
NAFTA and WTO are about "managed" trade, not free trade. That kind of gets glossed over by the politicians and the favored elite who can influence those agreements for their own benefit. The media is filled with people who can't balance a checkbook, let alone understand economics.
This country would be better served by getting the government out of the business of influencing trade. The tariffs as permitted in the Constitution were not about protecting US businesses, it was intended to be the source of revenues for the government. Incidentally, the ONLY source. But I digress...
What has destroyed the US manufacturing base is not slave labour in other countries- it is the strong dollar policies of the last 20 years. Fiat currencies are always subject to manipulation by governments, but we are hosed by the paradox of our greed. You see, in order to support our lavish lifestyles we keep importing "cheap" foreign made goods. Everyone wants shoes for $40, jeans for $19.99 and cars for $15,000. If the US$ is stronger than it should be, then it costs less $ to buy something from Korea or Indonesia.
The examples are endless. Lumber from Canada, lamb and beef from New Zealand and Australia. How do we pay for these things? And why do these sellers accept the US$? Because it is perceived to be strong, worth something. If it was not, we could not finance our $27 billion (Aug 2001) per month trade deficit. Thats $27 billion we paid to foreigners for stuff we bought from them, that they did not spend on stuff from us. Instead, they put that money into US investments and US$ bank accounts.
If these foreigners suddenly feared that their US$ were going to be worth less tomorrow than today, they would pull out of them in 2 seconds. We have trillions of dollars held by foreign entities. So it is in the interest of the US government and people to keep our $ strong, and if possible, for it to keep rising in value.
You don't think the Asian currency crisis was staged? Who benefitted? We did. Untold wealth was destroyed for millions or middle-class (and rich) people to the benefit of Americans. And it taught those uppity Asians a lesson- Keep your wealth in US$ or else.