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Kimberly Amadeo

NAFTA Pros and Cons

By April 24, 2008

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(Updated June 13, 2013)  NAFTA is highly controversial. Do the pros of NAFTA outweigh the cons?

Pros

NAFTA, or the North American Free Trade Agreement, is the world's largest free trade area. The agreement between Canada, the U.S. and Mexico links 450 million people and the $19.24 trillion in goods and services produced by the three countries. Trade has increased from $297 billion in 1993, the year before NAFTA was enacted, to $1.6 trillion in 2009 (most recent estimates) . Estimates are that NAFTA increases economic output in the U.S. by as much as .5% a year.

Some service industries, such as health care and financial services, see an increase in exports. Farm products also reap the benefits of NAFTA's lower tariffs. U.S. consumers also benefit from NAFTA. Mexican oil can be imported for less, lowering the cost of gas in the U.S. and decreasing reliance on oil from the Middle East. Lower gas prices means food can be transported more cheaply, as well. For more, see NAFTA Advantages.

Cons

NAFTA led to the loss of 500,000-750,000 jobs in the U.S., thanks to companies moving across the border to Mexico. As a result, workers in those industries affected by NAFTA could not bargain for higher wages.

NAFTA created negative consequences for Mexico, too. NAFTA allowed government-subsidized U.S. farm products into Mexico, where local farmers could not compete with the artificially low prices. As Mexicans lost their farms, they went to work in sub-standard conditions in the maquiladora program. U.S. companies also degraded the Mexican environment to keep costs low. For more, see NAFTA Disadvantages.

Does NAFTA's Pros Outweigh Its Cons?

NAFTA's disadvantages are significant. Can anything really justify the loss of entire industries in New York or Michigan, worker mistreatment for remaining workers in the U.S., or in the maquiladora program, and environmental damage along the border?

However, from an economic perspective, NAFTA is a success. Without it, the U.S. could not compete as effectively against the European Union (now the world's largest economy) or China and its trade agreements. That $1.6 trillion in increased trade is really needed after the 2008 financial crisis. Even more people would be unemployed without it.

Perhaps NAFTA should have been designed with better protections. At the same time, free trade agreements are a necessity for the U.S. when competing in an ever-more-globalized world.

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Comments

April 29, 2008 at 2:28 pm
(1) peter bowler says:

Kimberly, et al:
Once again I am compelled to write a comment, this time on the Free Trade articles. The rhetoric on free trade, NAFTA and all the other agreements continues to fly hot and heavy between the political parties, along with the usual playing with statistics to make various biased advocacy points.

However, to me this entire argument boils down to the question of what the end results have been to the United States in the years since these agreements were implemented. In my view, regardless of what job or income statistics are cited, the bottom line is this: are we better off overall as a nation (or world) today than we were prior to free trade, or not?

While one can argue this endlessly, to me the obvious answer is that we are not. The basic bottom line is the overall financial health of the country, and under almost any measure we are worse off. If you look at the extreme, unprecedented trade imbalances and resulting currency flow imbalances against us, there is your answer. Fiscally, free trade has driven us to the edge of bankruptcy not ever seen on a scale like this except by the losers of major wars. Will China forgive some of those debts held in the form of our Treasury Notes? I think not; instead of financial strength, we are open to the possibility of international financial blackmail or some future equivalent. I could not call this “better off”.

In addition to the financially negative position we have allowed ourselves to occupy, the world itself may only now be realizing that it is reaping the dubious benefits of rapid, uncontrolled growth of less developed countries and the consequent rampant pollution and commodities purchasing wars such as the world has never known. The inflationary effects of these events, along with food for fuel policies, have created this current global food crisis whose solution is not yet in sight. None of these consequences are remotely foreseeable without the sudden existence of these free trade agreements. Is the world itself really better off with this unchecked, uncontrolled development? I doubt it. And I doubt the peasant farmers turned factory workers are really all that happy either. The only real winners in all of this are those at the top of the food chain (read: income). Looking at the big picture, the answer to my original question is an unequivocal “no”.

May 9, 2008 at 1:09 pm
(2) JKulhavy says:

Please note that the use of the phrase “free trade” in the context of NAFTA or other such trade agreements is nothing more than political rhetoric. What such agreements tend to consist of is a relaxing of some tariffs between two countries, along with preserved tariffs imposed on non-participating countries. NAFTA is protectionist in its effects and outcome, and this is a fact that tends to be clouded by the inaccurate use of “free trade” in this context.

May 12, 2008 at 7:27 pm
(3) useconomy says:

Free trade, to me, is when tariffs are removed between the countries in an agreement. It seems you are arguing that it is protectionist against those not in the free trade agreement…point taken. Still, it is a free trade between those IN the agreement.

May 12, 2008 at 7:40 pm
(4) useconomy says:

Hi Peter,

I don’t think you can pin the overall health of the economy on NAFTA. There are many, many other factors that have caused the budget deficit, current account deficit and a $9 trillion debt.

Furthermore, I don’t think you can tell countries like Vietnam and Brazil that rapid growth is a bad thing, when their standard of living is improving. We can’t pull up the ladder just because we got to the top.

November 15, 2008 at 1:03 pm
(5) Natalie Mercado says:

It is so sad that no one really understands the impact that NAFTA has had on our country. Many farmers have gone bankrupt since the United States let food products come here from all these other counties. To sum it up we are consuming fruits and vegetables that are tainted with chemicals that have long been banned in the USA. But does anyone really care.Where are all the inspectors that should have been there doing there jobs? We are eating food products from other counties that are being watered with black water(sewer water). No wonder we are in such a terrible
state of economic failure. Please someone out there help our country back to its original roots before NAFTA……………………
We are actually doomed because all decisions have been made with dollar signs instead of safety for our population.

December 22, 2008 at 12:36 am
(6) TheCanuck says:

Free Trade has been inimical to Canada in many respects. It has further tied Canada’s natural resource wealth to the United States (which requires our oil, gas, food, etc., to keep prices low). What has happened in Canada, however, is that our economy has become even more resource dependent, and we have been precluded by legislation and by proxy developing a more robust tertiary economic sector (at least, sectors not tied to branch plants). It is complicated, but overall Canada is MUCH WORSE off since Free Trade has been implemented. We have seen a whiplash economy happen in British Columbia wherein the USA has shunned the tenants of free trade (i.e., softwood lumber dispute, which the WTO sided with on Canada in international courts several times, but USA still decided not to play fair), and yet has precluded Canada from finding other trading partners to fill the void. Ditto for the potato dispute in New Brunswick and the cattle dispute in Alberta, Saskatchewan and to lesser degrees Manitoba and British Columbia. All these provinces have suffered because of USA’s continued unfair trade practices under the auspices of “free trade”. You scream at high unemployment rates, but have you ever lived in a province where the norm is anywhere from 8 to 11% unemployment? If that happened — and is currently happening in the USA thanks to your elected idiots that failed to regulate your industries, financial and otherwise, you now are enjoying the fruits of the good ‘ol USA visionary business practices.

April 2, 2009 at 4:26 pm
(7) Harry Dingey says:

Do you know what an International Trade Account Balance really is?

The International Trade number is either Positive number or Negative number.

If it is a positive number, this means America is exporting more American Produced Goods and Services than America Imports from the rest of the world. This is very good.

If it is a negative number, this means America is importing more Produced Goods and Services from the rest of the world than America Exports. This is very bad.

In the below table America is in last place NO. 188. That is very, very Bad.

188. United States $ -568,800,000,000 2008 EST.

This trade number has decreased a little because of the latest Economical down turn. This Trade Deficit number was $ -760 billion dollars just before the latest down turn.

America Imports more goods from the rest of the world than any other country in the whole world.

America may even Import more goods than all the other countries of the world combined.

That is why all the other countries of the world keep worrying about America turning to protectionist International Trade Polices. Because the rest of the world can add and subtract and they all know that is exactly what a good politician would do if he really cared about the financial health of his country.

I was Industrial Engineer for Rockwell International for 30 years. Dealing with Production Numbers is exactly what I have done all my life.

The American Politicians are Destroying America by sending all the good paying America jobs off shore.

America will soon be a third world country.

As you can see, America has the worst International Trade Deficit than any country in the entire world.

WE are in last place.

This is why America is leading the world into a world wide DEPRESSION.

Thanks to them Damn Stupid American Globalist Politicians.

READ IT and WEEP..

+++++++++++++++++++++++++++++++++++++++

The World Fact book

Rank Order – Current World Trade Account Balance

Rank, Country, Current account balance.

Date of Information: This page was last updated on 24 February, 2009

1
China $ 368,200,000,000 2008 est.
2
Germany $ 267,100,000,000 2008 est.
3
Japan $ 187,800,000,000 2008 est.
4
Saudi Arabia $ 141,000,000,000 2008 est.
5
Russia $ 97,600,000,000 2008 est.
6
Norway $ 84,350,000,000 2008 est.
7
Kuwait $ 65,210,000,000 2008 est.
8
Venezuela $ 48,440,000,000 2008 est.
9
Netherlands $ 47,000,000,000 2008 est.
10
Libya $ 43,330,000,000 2008 est.
11
Switzerland $ 40,810,000,000 2008 est.
12
United Arab Emirates $ 36,410,000,000 2008 est.
13
Algeria $ 35,800,000,000 2008 est.
14
Sweden $ 35,220,000,000 2008 est.
15
Singapore $ 32,120,000,000 2008 est.
16
Iran $ 27,470,000,000 2008 est.
17
India $ -38,390,000,000 2008 est.
182
Australia $ -43,840,000,000 2008 est.
183
France $ -47,270,000,000 2008 est.
184
Turkey $ -51,680,000,000 2008 est.
185
Italy $ -68,820,000,000 2008 est.
186
United Kingdom $ -72,540,000,000 2008 est.
187
Spain $ -152,500,000,000 2008 est.
188
United States $ -568,800,000,000 2008 est.

Countries for which no information is available are not included in this list.

++++++++++++++++++++++++++++++++++++++++

Why is the American Politicians Sending all of the highest paying jobs off shore to China when American workers have an unemployment rate approaching 10%.

Why does the American Politicians care more about giving all the high paying jobs to the Chinese workers than they do to American Workers?

The most Important Question is why we Americans elect them back in office.

We deserve exactly what we get.

We are totally destroying our children and grand-children hopes and dreams of a better future and replacing it with a life of third world slave labor.
Thank you Father and you too Grandpa…

+++++++++++++++++++++++++++++++++++++++++++++++++

Do you know what would really happen if American was to pull out of NAFTA and the WTO right now?

What would happen if America just stopped exporting everything to the rest of the world and just produced everything America now IMPORTS from the Mexico, India and China?

America would automatically Experience a net increase in newly created jobs to the tune of well over $760 Billion dollars of new jobs every year.

All these American Politicians keep telling us:

“Oh no, American can not turn to protectionist because look at all the America jobs would be lost from the world not buying American produced goods”.

That statement is the biggest lie that has been told to the America people and told so often that now Americans just automatically think it is the truth..

What Rock have all these Globalist American Politicians been living under for the last 20 years.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

“America Must Pull out of NAFTA and WTO to SURVIVE”

I worked as an Industrial Engineer for 30 years for Rockwell International.

That is exactly what I did my whole life. I worked for 30 years evaluates labor cost for Rockwell International.

So trust me, I know when someone is getting screwed when it comes to labor cost.

This has been coming on since the very minute America joined NAFTA and the WTO. America has been losing money and jobs to the whole world. Every year and it has grown to a humongous amount in the last few years.

I have always said, things will just keep getting worse then at some point America will go into a total Collapse.

If you think you have money or a good job and will not be affected. I have news for you. Everyone will feel much pain before this is completely over.

Just imagine the Federal Government not having enough money to pay the Social security pensioners or their Medical Benefits or anything else. This is exactly where America is heading, so bucket your seat belt because we are in for a very, very bumpy ride.

My older bother who serviced in the Army in Europe during World War II, He said in Germany the money was so worthless that they had to take a wheel barrel full of money to the store to purchase a loaf of bread.

America is in a cross roads either we Pull Out of NAFTA and the WTO and solve our jobs problem or America will just keep going down, down till America goes into a total collapse.

What the President and Congress are doing is total insanity. This will be the third or forth bailout by congress and he promises us there will be more bailouts to follow.

What you are seeing right now is the planned destruction of America by President Obama and all his elite globalist cabinet members in order to usher in the “ONE WORLD ORDER”. Then we can kiss all of our freedoms good-bye.

Please tell me. Is there no end in sight?

America doesn’t need another bailout. America needs all those jobs that the Politicians have been sending off shore to Mexico, India and China for the last 15 years.

The Hell with borrowing Trillions of Dollars from China.

Then the American workers can pay their house payments and feed their family and things will start to improve over night.

This is a NO BRAINIER.

Pull out of NAFTA and the WTO.

The International Trade Balances for year 2006.

You Figure it out for yourself:

If America just stopped EXPORTING anything in 2006 we would have lost $1,440 Billion Dollars in Jobs.

If America just stopped IMPORTING anything in 2006 we would have gained $2,200 Billion Dollars in Jobs.

That would be a Net Total Increase of $ 760 Billion Dollars of new Jobs created every year in America.
T
hat would be a net decease in the National Debt every year.

But, all these Politicians are all Globalist and will not give up until America is totally destroyed. This is very, very sad because all is needed is USA PULL out of NAFTA and the WTO and watch the jobs increase. In facts this will create more jobs in America than we can fill.

They would rather Spent Billions of Dollars on trying to under write their Globalist Policies and keep borrowing money from China.

You want creating NEW JOBS in AMERICA?

“STOP Obama and his Globalist buddies from SENDING AMERICAN JOBS Off Shore TO CHINA”.

The American Politicians just don’t get it yet, but the next election we’ll get them.

They can print and throw all the money at this problem they want. Things may get a little better for a while and then we will slide back again into a recess or maybe a depression. Then we will need another bailout.

This is like: do you teach someone to fish or do you keep purchasing the fish for him, with borrowed bailout money from China?

Wait one minute. How did China get so much money and America get so poor?

a. America started giving China all the high paying manufacturing jobs when America joined the WTO.

b. China uses these manufacturing jobs to produce manufactured goods.

c. America then borrows money from China to buy all of these manufactured goods produced in China.

d. Then America starts into a Depression because all the high paying JOBS was send off to China and the Politicians tell us; “What we need now is more new JOBS” so they Borrow Trillions of more Dollars more from China to pay for all those Imports from China.

e. The only thing the American Politicians have created in the last 15 years is the largest NATIONAL DEBT in History for our Children and Grand-Children will be forced to pay by flipping hamburgers at McDonalds.

American Politicians can not keep sending all of those good paying jobs off shore to China and expect the American workers to work checkout at Wal-Mart or flip hamburgers at Macdonald’s for minimum wages.

This is really starting to look like all of those American Globalist Politicians have declared War on the American People and Workers and are trying to destroy America from within to usher in their great “One World Order” in through the back door.

The America Politicians have already given our entire Manufacturing Base to China.

Do you want know the definition of a THIRD WORLD COUNTRY?

That’s a country that has lost control of the national Currency and has no Industrial Manufacturing Base. Wait a minute that’s sounds like America?

The American Politicians are going to keep screwing the America workers until they lose everything and that’s exactly where we are headed. If that happens, I would not want to be a politician in either party.

At some point the America people will get so mad, I predict they will be shooting people in the street. They may even want a put all of those American Globalist Politicians on trial for treason and seize all their family wealth for destroying our great country.

Then at some point things may get nasty in Washington, D.C.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

I was hired in Dec-1956 at Rockwell international in Newark, Ohio. I worked for seven years on the shop floor as a Machining Inspector and attended Business college half-day to get my education.

Then after I got my 4 year college degree, I was hired as an Industrial Engineer in the front office and had to go back to college to take a few more mathematical subjects.

Then I worked the rest of my thirty years as a Department head over an Industrial Engineer Department in the front office at Rockwell International at Newark, ohio.

So, when it comes to understanding how NAFTA and the WTO are screwing the American Workers I understand only to well.

Let me say one thing about all this Globalism and the ONE WORLD ORDER.

There is no way this concept of Globalize can never work for very long because they are pushing on a string.

Why do you say that?

Whenever an employer succeeds in depriving the workers who are producing any given product a fair and living wage. Just like they have been doing for the last 15 years.

Then that employer will at some point in time, will run out of people who can afford to purchase the very products being produced.

All the American Jobs have been moved to China, the American workers have been laid off, American wage scales has been push down by illegal immigrants and credit cards maxed out.

The Chinese workers are working for slave labor at $2/day.

That is exactly where we are right now in time.

Now, these International Companies have for the last15 years now of sucking money out of the American people and the American wage scale has just went down, down and down till the American people are at a point, they can no longer pay for all these products being imported from China, for house payments, for rent or to feed their own family.

So, please tell me who is left with enough money or Income to Purchase these vary same products that was moved off shore to China?

The answer is ABSOLUTELY NO ONE.

That is exactly where we are right now.

President Obama and all these other Globalist Politicians have voted for all of these humongous bailouts that will only temporarily support these Globalize policies.

Bailouts will not correct the America’s Trade Deficits and the dislocation from the lost of American Jobs to China.

So, America may get a little better for a few months and then slide right back off into another recession or depression.

But, the next time will be ever worse because America will now owe all these additional Trillions of dollars, plus the extra interest payments on the National Debt.

There can only be one solution to solve the American Jobs Problem and that is pull out of NAFTA and the WTO and America must go back to the vary same way America conducted International Trade Policies for over 216 years, before NAFTA and the WTO.

Then you will automatically see well over $760 billion dollars worth of new jobs created in America. There will be so many jobs created the American workers will not be able to fill all of them.

You ask me, how can that be?

Well, the very minute America Pulls out of NAFTA and the WTO and all those same people who moved all those jobs off shore to China will bring all those same jobs back to America Pronto.

Do you want a help? Please email my article to all your friends and tell them to pass it along. You can even post it any place you want a post it too.

April 7, 2009 at 3:04 pm
(8) Emilee says:

This is ridiculous NAFTA is totally not cool. Someone needs to fix it NOW

July 8, 2009 at 8:56 pm
(9) Bev says:

Why are our newspapers and news programs on TV not reporting on NAFTA? The agreement was to end 15 years after it was signed in 1994 – THAT’S THIS YEAR!!

I’ve been studying imports and exports since about 2003 so I could understand the issues and come up with ideas on how to work within the structure of business to help American businesses. Our government has had plenty to deal with for the last year, but for the sake of the economy, Americans need to know how our government plans to proceed with the NAFTA regulations.

Please understand, that NAFTA was designed in part to help the US sell farm products we had in surplus to Mexico and to enable our manufacturer’s (who it seems had no problems sending US jobs to Mexico to avoid paying high wages to US workers). In return, there are agreements that the US will lower duties for products of Canadian or Mexican origin.

The internet explosion of the 90′s began with the development of the micro processing chip which took the idea of global communication to realms never imagined. Now, the trade agreement which was only supposed to affect the blue collar worker, has people in India (who are paid much lower wages than Americans) taking your order at the local hamburger drive thru and sending it back to the kitchen for fulfillment.

Have you asked your congressman what’ going on lately?

July 9, 2009 at 12:05 pm
(10) useconomy says:

Hi Bev,

You raise a good point. NAFTA renegotiation was a big part of Obama’s campaign, yet it hasn’t really been addressed this year.

Part of it is, of course, the recession has taken precedence. I suspect, however, that he now realizes renegotiating NAFTA would open up a Pandora’s box at a time the economy needs all the help it can get. For example, Mexico has said it wants rights to send its trucks across the border – something that was promised in NAFTA but never delivered.

Kimberly

July 9, 2009 at 6:46 pm
(11) Harry Dingey says:

International Trade is a Ponzi scheme. “This is an unsustainable progression of a moving all the highest paying Jobs off shore to have $2/day Slave Labor in China produce products for Industrialized Countries of the World”.

The REAL problem is that International Globalization of Trade is a Council on Foreign Relations (CFR) Ponzi scheme.

Here is how it works:

First you move all the highest paying jobs off shore to biggest labor market in the world.

Of Course in China that means you can get your products produced by the slave labor cost of $2/day.

Now you take all of these finished products and shipped then back to America, the largest and most expensive product market in the world. That way my International Company will make the largest profit possible on every item produced.

You get the products produced by the Slave labor and then you bring back too America and sell the product for best price.

But, then like all PONZI schemes there is this big problem of at some point in time you run out of people to sell your product too.

You say.. Why do you say that?

That is exactly where we are right now in this Ponzi scheme cycle. But, it seams I am the only person in the whole world completely understands it.

All the Industrial Countries of the world elected to join the NAFTA or the WTO and they thought this was the most efficient way to produce products.

Now we the people of all of the Industrial Countries are all going to be forced into bankruptcy and lose everything we have worked for all of our lives. That includes our Job, our home if mortgaged, our Pensions and everything else.

This is going to be exactly like the Big Depression of the 1930s, except this Depression will be much, much worse.

Because during the 1930s there was no credit cards and credit was few and far between. Now, it seems everything we own has been purchased on credit of some type. So, I guess now we will loss everything we own this time.

To go back to what I have dubbed: “International Trade PONZIE SCHEME”.

I want ask you just One Question.

If all of the Industrial countries of the world moved all of the best paying jobs off shore to a SLAVE LABOR MARKET paying $2/day like they have done for the last 20 years.

All of the Workers in the Industrial countries of the world will now be laid-off with no income and can not pay their bills.

All of the workers in China the SLAVE LABOR CAPITAL of the world will be working for $2/day.

HERE IS MY QUESTION:

Please tell me: “who in the HELL will have enough money or Income to Purchase all of these SLAVE LABOR products”?

Of Course the answer is “no one will have any money”.

That is exactly where we are right now..

The sad part about this is that all of this could have been avoided. Even the $875 Billion Dollars spent to Bailout Obama’s ole CFR buddies, the International Banksters and the Wall Street Gangsters.

If American would drop out of NAFTA and the WTO right now things would automatically correct it self like it has always done for the last 216 years in America.

July 12, 2009 at 5:04 pm
(12) useconomy says:

Hi Harry,

Obama’s campaign pledge to renegotiate NAFTA has been put on the back burner, at least until the economy is stronger.

For an update, see “Has Obama Forgotten NAFTA Promise?”

Kimberly

July 12, 2009 at 6:05 pm
(13) Madwesh says:

Unfortunately, as long as the “new” NAFTA is designed by politicians and strategies defined by politicians, they will mess up the re-negotiation as well.

Unfortunately, I have no respect for politicians who consider themselves as savvy businessmen and make business decisions. NAFTA is a business decision. NAFTA was sold under a whole different story including “will create over a million new high paying jobs locally..” for those who remember it. We are seeing more of this same rhetoric from the COngress and the president.

Neither do the politicians have the savvy nor does the plan play out the way they tell the constituents when it is in the form of a bill in Congress. And worse still, no one challenges them on the outcome – everyone complains, but does nothing.

How about the people – we – ask our government to fix one thing and prove it before we go on to the next one.

October 30, 2009 at 11:12 am
(14) blanksterman says:

This is all a part of China’s master plan to destroy the U.S. Read the book “Unrestricted Warfare.” It lines up with all the comments that comments Harry made above.

November 7, 2009 at 7:31 pm
(15) Kimberly says:

Why would China want to destroy the U.S. We are their largest customer and biggest borrower?

Kimberly

November 17, 2009 at 8:58 am
(16) brice says:

This isn’t 1905 anymore. we are far past the days of imperalsim and we are far from the most powerful country in the world. Obama…….focus on us and only us. Stop the bailouts, money printing, and spending money we don’t have.

November 17, 2009 at 11:43 am
(17) Kimberly says:

With government debt at $11.9 trillion and growing, and personal debt at $2.5, the total is slightly more than the entire economic output of the U.S. This means the government can’t finance our way into recovery.

Keep in mind the debt was $10 trillion before Obama even took office! Years of defense spending at $700 billion per year took it toll on the national debt.

Kimberly

November 17, 2009 at 7:31 pm
(18) Mark says:

Harry Dingey for President. Nafta and WTO cost me my job of 13 yrs 14 months ago, haven’t been able to find anything yet, why, to many folks out of work and not enough jobs to go around. You’d have better odds winning the lottery than finding a job…..was 2-1/2 to 3 yrs from paying everything I own off….now I MIGHT be 2-1/2 months from losing everything I own……All I say is….worry about what goes on here in this country before you worry about other country’s……….

November 17, 2009 at 7:35 pm
(19) Mark says:

screw the politicians……..they did this to this country…nobody else

November 18, 2009 at 10:23 am
(20) useconomy says:

Jobs are incredibly hard to find. Many of my friends are finding two or three part-time gigs and freelance work to tide them over.

Check out The Freelance Economy for lots of ideas.

Kimberly

December 14, 2009 at 9:42 pm
(21) Harry Dingey says:

Pat you are 100% right.. Our presidents and Congress have been wrong on everything they have done for as long as I can remember.

They are destroying our wonderful Country.

+++++++++++++++++++++++++++++++++++++++++++++++++++++

I CAN CREATE 15 MILLION JOBS ALMOST OVER NIGHT right here in America !!!

Here is my Job creation Computations:

America Imported in 2006 mainly from China, Mexico, Japan and India well over $760 Billion Dollars more than we exported in 2006.

The $760 billion dollar import number that I am quoting includes Oil Imports which is something that America cannot change over night therefore must be subtracted out of total import number. The total U.S. crude oil imported during 2006 amounted to: $309.4 billion dollars of crude oil in 2006.

So, $760 billion minus $309.4 billion = $450.6 billion dollars worth of Manufactured Goods that could have and should have been produced right here in America.

Based on conventional wisdom in job creation, if you take $450.6 billion dollars worth of imported goods / $30 billion to create one million jobs = 15.02 million jobs would be automatically created almost over night.

+++++++++++++++++++++++++++++++++++++++++++++++++

Now because some of you people still do not understand what I an saying. I am going to recalculate the cost of the Trade Deficit in REAL TIME Jobs.

So please do not tell me the stock answer: “YEA, but look at all of the EXPORTS JOBS the USA will LOSE.”

The American people have been BRAIN WASHED into thinking GLOBALIZATION is in the best interest of the American Peoople.

I think they are trying to destroy the USA because that will be the final outcome.

+++++++++++++++++++++++++++++++++++++++++++++++++

Total USA Imports in 2006:
———————————-

$ 2,211.7 billion —— (This includes Crude Oil)
$ 309.4 billion less — (Spent on Imported Crude Oil)

$ 2,211.7 billion minus $ 309.4 billion = $ 1,902.3 billion total manufacturing imports.

————————————————————————————————–

$ 1,902.3 billion / 30 billion=63.41 million jobs lost to Imports from China, Mexico, Japan and India.

==================================================

Total USA Exports in 2006:
———————————-

$ 1,451.7 Billion / 30 billion=48.39 million Jobs created from Exports.

If USA Pulls out of NAFTA and WTO right now:

USA could possibly lose 48.39 million Jobs from EXPORTS.
However, I am sure many countries will still export many items from the USA because they will be forced too. That would create even more jobs gained than I have estimated.

USA would absolutely gain 63.41 million Jobs created by manufacturing IMPORTS right here in the USA.

So, 63.41 minus 48.39 = 15.02 million NET JOBS GAINED.

An increase of 31% increase in creating new Jobs by closing the doors to the USA the world’s largest consumer market in the entire world.

My calculation means an ABSOLUTE 15.02 million Jobs gained. even if the rest of the world did not buy one penny of USA EXPORTS.

But, instead the Washington Politicians with all their Infinite Wisdom elected to move all of that manufactured goods off shore to China. Even as America has up-ward of 17% unemployment rate and climbing.

Then to make things even worse the Federal Government must borrow money from China and Japan to purchase back these very products as they are being brought back into America.

I think we are witnessing the Federal Government in the process of transferring all America Assets off shore to Communist China on a silver platter.

Why would the American Government sit on their A$$ and watch as all the Manufacturing Base and all our high Technology are being shipped off shore to a Communistic Country like China?

Make no mistake about it China is still a Communistic Country.

We are handing all of the American Military Defenses and our entire manufacturing base over to China on a silver platter.

This must be stopped if AMERICA is to SURVIVE.

December 17, 2009 at 2:12 am
(22) B Graham says:

Harry Dingey is 100% right, Nafta and WTO cost millions their jobs. When I try to talk to others about it, they do not understand. Harry Dingey you are the first person that truly understands.
But I was all for Nafta and WTO when it started. I had “HAD” a company that made automation equipment. Nafta and WTO was to open sales for me around the world, NEVER HAPPENED!!!!! More & More & More product each year where shipped in the USA and less and less was going out.
If a USA company came up with a new product, they would only buy equipment to build the product if was NOT going to be sold at Walmart. If Walmart was going to buy the product it would have to be built out of the USA, so Walmart could keep those prices falling.
I know we all love the falling price, but it has to stop. BUY ONLY USA PRODUCTS, it will be a game just to find a product made in the USA. The easy fix to the US Economy is to get rid of the Nafta and WTO TODAY. If we said, in 6 month from now the Nafta and WTO was going to be remove. We would not have as many US work to fill all the jobs that would take.
We need to find a way for all Americans to understand this, but a have a hard time finding one.

December 17, 2009 at 10:47 am
(23) useconomy says:

You were right when you said “If a USA company came up with a new product, they would only buy equipment to build the product if was NOT going to be sold at Walmart. If Walmart was going to buy the product it would have to be built out of the USA, so Walmart could keep those prices falling. ”

The U.S.A. has one of the highest standards of living – GDP per person is $40,000, vs $6,000 in China. This means Chinese workers can be paid less, and so their exports to the U.S. cost less than we can make here.

However, most of this high standard of living is going to the richest in the U.S.

Between 1979 and 2005, household income (after taxes):

1. Tripled for the richest 1% of households.
2. Rose 80% for the top fifth.
3. Rose 21% for the middle fifth.
4. Rose only 6% for the bottom fifth.

Trying to prevent U.S. companies from outsourcing will not work because it is punishing them for responding to a global redistribution of wealth. Neither will protectionist trade policies or walls to prevent illegal immigrants. The U.S. must accept that a global wealth redistribution is occurring. Those in the top fifth of the U.S. income bracket must realize that those in the bottom two-fifths cannot bear the brunt indefinitely. Changes in tax policies, access to education and employment training should be planned for now so that the transition is gradual and healthy for the economy overall.

For more, see
Income Inequality in the U.S. and
The Big Squeeze.

Kimberly

January 12, 2010 at 3:07 pm
(24) hendren says:

I’m only 25 and remember when NAFTA took affect. I asked my dad about it and he pretty much told me that they were lowering the taxes on imported goods, I told him that was stupid. I thought by making it more expensive to import with taxes kept jobs in America. Guess at 10yo I was smart enough to understand that very simple concept.

January 12, 2010 at 3:35 pm
(25) hendren says:

I guess I’m probably simple minded without any formal education but I thought of it in small terms. My Uncle owns a small business in our little town repairing appliances. He charges slightly higher the larger companies in the city 50miles away. It would cost someone in our town to have them come all the way here do to travel expenses, so the employ my uncle keeping him in a job and money in our town. NAFTA to me is the same as the government paying the larger company’s travel expenses so that they could expand their business, which would put my uncle out of work and export our town’s moneys. Luckily they haven’t gone that far yet, but by making it cheaper for other countries to export to America is pretty much the same thing. There goes our jobs and money. I honestly think my five year old niece could understand this simple concept.

January 12, 2010 at 6:07 pm
(26) Kimberly Amadeo says:

Hi Hendren,

That is a very good example. You have a knack for taking a complicated economic concept and making it easy to understand.

I would also like to add that the tariffs for exports from America to Mexico were also erased. So, to follow your analogy, it is also like someone paid for your uncle to ship his goods to the city to sell them. In addition, Mexico’s tariffs were much higher.

Unfortunately for small business folks, people like your uncle don’t always have the desire or ability to take advantage of trade with Mexico. Yet, they suffer from the effects.

Thanks for sharing your story. As this page is getting pretty long, I created another page for comments. It is NAFTA.
Kimberly

February 14, 2010 at 1:46 pm
(27) Harry Dingey says:

Stimulus Creating Green Jobs… Overseas
by Dustin Ensinger on February 11, 2010 – 11:55am

As intended, the $787 billion stimulus package is creating thousands of “green jobs,” unfortunately the vast majority of those jobs are going overseas, according to a new report conducted jointly by the Investigative Reporting Workshop and ABC News.

So far, over $2 billion has been spent on wind energy projects through the stimulus package – enough to power 2.4 million homes, the report found.

Yet, of the money spent thus far, eight of every $10 went to a foreign company, the report says.

“This is one of those stories in Washington that when you tell people five miles outside the Beltway, or anywhere else in America, they cannot believe it,” Sen. Chuck Schumer (D-NY) said, according to ABC News. “It makes people lose faith in government, and it frankly infuriates me.”

The Investigative Reporting Workshop estimates, stimulus funding for wind projects have created roughly 6,000 manufacturing jobs overseas and only hundreds in America.

Thus far, stimulus funds have paid to create 1,807 wind turbines to fuel American homes, businesses, schools and other buildings. Just 588 of those were manufactured domestically, according to the report.

The largest grant thus far – $178 million – for a wind farm in Texas, went to a bankrupt Australian company that outsourced the manufacturing to a Japanese company, the report found.

The lack of American jobs created by the stimulus package is troublesome for two reasons. One, the president has said numerous times that the nation that leads in clean energy production in the 21st Century will lead the world’s economy as well. Judging by the report, it doesn’t appear as though America is leading that race.

Secondly, the whole intent of the stimulus package was to put America back to work by creating jobs here at home.

“Very few jobs here, lots of jobs in China,” Schumer told ABC News. “That is not what I intended or any other legislator who voted for the stimulus intended.”

The problem would have never arisen had the stimulus bill included strict “buy American” language. Legislators that fought to include strict domestic procurement wording in the package were rebuffed by White House officials, whom feared to be labeled “protectionists.”

“It is fine that the Chinese make them. But why don’t we use the stimulus money to start building up an industry to build them here, that was the very point of the stimulus,” Schumer told ABC. “No one even imagined, given how strongly the stimulus advertised jobs in America, that this would happen. I am befuddled that it happened and even more befuddled that the Energy Department is not backing off.”

++++++++++++++++++++++++++++++++++++++++++

WHY IS HARRY DINGEY THE ONLY PERSON IN AMERICA TO FIGURE THIS OUT?

Make no mistake about it the International Trade Deficit must be balanced if America is to SURVIVE. There is only three ways to correct this humongous Trade Imbalance.

1. Increase the American Exports by $450.6 Billion Dollars per year. This is absolutely impossible.
or
2. Decrease the American Imports by $450.6 Billion Dollars per year. Then manufacture the merchandise in America.
or
3. Pull out of NAFTA and the WTO and Produce all Imports in America. Do not worry about Exports and this will Create 15.02 million Jobs instantly and maybe ever more.

I am suggesting we do number three. This can only be done by the American Congress and will automatically bring the large American Manufactured Goods Trade Deficit into BALANCE almost over night. Where Exports + Imports = Balance of ZERO.

Here is exactly what would happen. Toyota of Japan would be forced to totally manufacture in America, every car sold in America.

Every item sold in every store in America would be required to be manufactured right here in America. America would be swimming in newly Created Jobs almost over night.

I can remember this large sign posted in Wal-Mart: “EVERYTHING SOLD IN THIS STORE WAS MADE IN AMERICA”.

Sam Walton said: “Everything sold in all Wal-Mart stores will be made in America”.

I CAN CREATE 15 MILLION JOBS ALMOST OVER NIGHT right here in America !!!

Here is my Job creation Computations:

+++++++++++++++++++++++++++++++++++++++++++++++++

Total USA Imports in 2006:
———————————-
$ 2,211.7 billion —– Total Imports.
$ – 309.4 billion minus -(Money spent on Imported Crude Oil)
————————————————–
$ 1,902.3 billion / 30 billion=63.41 million jobs lost from Imports.

==================================================

Total USA Exports in 2006:
———————————-
$ 1,451.7 Billion / 30 billion=48.39 million jobs America Created from Exports.

If USA Pulls out of NAFTA and WTO right now:
USA would absolutely gain a total of 63.41 million Jobs by Manufacturing all IMPORTS right here in the USA.

So, 63.41 minus 48.39 = 15.02 million NET JOBS GAIN. But, a lot of Exports must be purchased in the USA. That would mean an even larger number of jobs created in America than I have estimated.

Also, I should note that I have subtracted out the $309.4 billion dollars that America spent on Import Crude Oil in 2006. This is another problem that must be solved later.

My calculation means an ABSOLUTE 15.02 million Jobs gained if the rest of the world did not buy even one penny of USA EXPORTS.

SO MOTE IT BE. . . . .

Do you truly want to help straighten out the United States Government now? Then, copy and post this article everyplace on the Internet you can post.

BY: Harry Dingey

Have a good day my friends.

March 4, 2010 at 9:05 am
(28) Sophmore Economist says:

Hi, I’m a Danish second year economics student and I’ve been skimming through the comments for this article as research for a paper I’m writing on a possible case for a change in the trade and regional integration strategies of the United States. From what I can see the main concern about NAFTA is the loss of jobs because of foreign competition?

It seems that you’re putting up a case for America focusing on America only through self-sufficiency of goods (substituting imports with goods made in America), pulling out of NAFTA and other FTAs, stopping all aid to foreign countries etc etc.
What I see as a problem with this suggestion is that though it would undoubtably create a lot of jobs inside America, the price of every good produced would rise in every store across the country because labor-intensive goods can no longer be imported from countries with cheap labor in exchange for capital intensive goods made in America. Furthermore many countries, most of all Canada and Mexico are utterly dependant on America for both IMPORTS and EXPORTS, if the US suddenly chose to put a stop to all this these two countries would be in serious trouble! according to the Latino Barimetro, Mexico is currently one of, if not the most, dissatisfied country in the Americas the economic ground on which NAFTA was built (improving living standards for Mexicans and creating more jobs in Mexico by attracting US investment for labor intensive production and thereby decreasing illigal immigration into the US, which was around 170.000 a year before NAFTA but which had rissen to more than 500.000 a year in 2008) has created better conditions almost solely for the richest part of society (this tendency is the same for all 3 NAFTA members)). I highly doubt that things in Mexico would get any better by itself if America retracted all aid, help and investment currently given to Mexico, which means that crime and corruption would most likely rise drastically leading the drug loards to become even more powerful creating huge problems for the US. Even as it is now CIA is listing a possible collapse of Mexico a top priority in relation to national security.

Furthermore a case for US self-sufficiency would cause an uproar and retalliation (extreme tariffs on American exports) not only from the NAFTA members but from every country and organization trading with the US (the EU, Japan, Korea etc). IF the US for some reason went ahead and became self-supplying anyways it would be a major blow to America’s status as any kind of world-superpower, everyone would turn to an even greater extent to China and India for trade.

I agree that NAFTA as it is now isn’t working (considering the social and political deterioration of Mexico (drug wars/trafficking and illigal immigration in other countries) and the failure of the economic foundation upon which NAFTA was founded).
But I do not believe that self-sufficiency is a path any country will want to (or even politically COULD) persue in the global society we live in today.

Please tell me if there are holes or shortcomings in my view, I have, after all, only been studying this for a couple of months (NAFTA wasn’t part of last years curriculum) so I’m quite certain that I’m far from flawless in my knowledge of the subject.

March 4, 2010 at 12:20 pm
(29) Kimberly Amadeo says:

You are spot on in your analysis. I’m afraid most of the opponents of NAFTA don’t see the bigger picture in terms of how free trade works throughout the world. It is a give-to-get situation. You’ve got to lower your tariffs to receive lower tariffs for your exports.

One of the reasons the Great Depression lasted so long was because countries around the world threw up tariffs to protect their internal manufacturers. The result? By 1933, world trade plummeted 65% as measured in dollars and 25% in total number of units.

The U.S. is blessed with a large domestic market, so it would always have someone to sell to. Unfortunately, one of the biggest exports is aerospace. Not too many families in America are buying planes right now. So, exports would drop.

The other result would be higher prices, especially in oil. The U.S imports $158 billion in oil from Mexico and Canada. Without NAFTA, Americans would pay higher prices at the gas pump.

Kimberly

March 23, 2010 at 12:30 am
(30) has says:

What can a regular citizen like myself do right now, besides writing to my congressman?

June 16, 2010 at 7:38 am
(31) bboice says:

One thing that is not being seen in the big picture with NAFTA is the countries that are rich enough to buy aerospace products and large quality good are at war with the US. If a company indeed wanted to increase their global market in those areas they can by simply building plants overseas. Even Harley-Davison has a plant in Singapore and is building one in India because they know it is the wave of the future. But because there are no tariffs we will now see our own once American made products come back to the US with another countries stamp on it because these countries have no labor laws they can pay less.
Let me explain how this works as I saw the effects of NAFTA first hand. In 1994 the contract design firm I worked for received a large order to convert Italian paper converting equipment designs to English. This Italian company had recently built a plant here in the US in order to avoid tariffs by building a plant to market their equipment here in the states. The reason they did this was it was cheaper to build it here in the US than to ship it from Italy. Halfway through the project NAFTA was put in place and the tariffs were dropped. The company who built a plant here in the US then pulled the order and turned the building into an ex-large storage facility to store the products they shipped over from Italy. Why build in the US if it is cheaper to build it there and ship it to the US? Global economy or not we need to recant or modify NAFTA to protect our own economy. It seems not a single product sold in our store shelves are made here but the shelves of our department stores are flooded with poorly made cheap clothing and useless novelties made of toxic plastics.
My drafting software is now developed in India and suddenly India is in direct competition with me for the drafting jobs here in the US. It is the same software I have been using since the early 80’s but in the last six years I have never seen it loaded with so many slow down trips and bugs in my life. What ever happened to conflict of interest or national security?
Ask yourself: Do we in the US really need a cheaper resource for poorly fitting clothing, toxic plastic dog poop and software loaded with bugs? We in the US are only opening ourselves up as a target or dumping ground of cheap scrap product. Then what, we fill our landfills up with toxic scrap because it was fun for the moment? American needs to return to producing high quality products and take pride again in our work once again or die as a nation.

March 1, 2011 at 7:08 pm
(32) Randall Crawford says:

Folks, Harry Dingy isn’t the only one to figure this out. A liitle guy they made fun of who ran for President called NAFTA a “giant sucking sound of jobs”….ladies and gentlemen, I present to you, Ross Perot….

April 12, 2011 at 6:22 pm
(33) Ryan Winter says:

hello we are studying NAFTA in HS and Im wondering do most people agree or disagree????

April 12, 2011 at 9:37 pm
(34) useconomy says:

Hi Ryan,

Most people that I get email from think NAFTA took away U.S. jobs, so I would say they disagree.

Kimberly

August 3, 2011 at 12:10 pm
(35) Steve says:

Just returning manufacturing jobs to the US is an overly simplistic view of the solutions to the NAFTA problem. You can’t have a living wage and cheap goods at the same time. There is the problem of pure and simple economics. People will not pay the price that it will be necessary to charge to sustain American workers. Who will be willing to pay $60 a pound for strawberries? Have you asked yourself why those “evil” capitalists have been so eager to ship jobs overseas? Is it because of the costs of doing business here? Can it be skyrocketing medical costs the burden of which Obama wants to make a cost of doing business even for small businesses? Where is it written (except in Obamacare), that my health bills are my employer’s responsibilities? Some of you have pointed out the effect of NAFTA on the environment of the developing countries-that’s another reason why jobs are there-environmental regs here are through the roof and have inordinately increased the cost of doing business in the US. This will only get worse in the near future under the Obama EPA. Face it, except possibly for expensive high tech products, it will be very difficult to return manufacturing jobs to the US and still have a market to sell to. As the purchasing power of the US middle class shrinks, there is greater demand for cheaper goods. Quality takes a back seat to price. The real cause of these problems can be traced to a “lottery” mentality in the citizenry-excess abuse of credit and the tendency toward litigation, as well as an anti-business atmosphere in DC, has increased the cost of everything and almost eliminated the demand for consumer goods at US manufactured prices. I would like to see the return of American manufacturing as much as anyone, but I’d be just as shocked as you when the corner dollar store turns into a ten-dollar store!

October 10, 2011 at 9:55 am
(36) chuckee cheese says:

really? you guys cant do nothing about what there doing and do you guys have a life? really? i mean really?argue about something through comments and write a whole freiking page about it? Get a LIFE PEOPLE

November 7, 2011 at 3:53 pm
(37) BDaddy12 says:

Nafta is just a redistribution of wealth..These companies are doing fine..It is the worker who suffers …no jobs here..low wages over there..

January 17, 2013 at 10:16 am
(38) TheBigPimpofOaklandYall says:

The Revoultion is nearing

January 17, 2013 at 9:44 pm
(39) Phil Mcgroin says:

this sucks!

January 17, 2013 at 9:46 pm
(40) chimmy says:

very interesting and good for school project

February 28, 2013 at 11:49 pm
(41) Aura N. says:

Thank you for writing this article. I found it very useful as a stufy tool for my upcoming assessment (the Pros and Cons of NAFTA). The information is unwritten, and has no obvious biases that sway the reader in a specific direction. Very well written.

March 1, 2013 at 10:20 am
(42) Kimberly says:

Thanks, chimmy and Aura. I’m glad you found the article useful!

Kimberly

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