Monday, March 3, 2008

Is NAFTA Really All That Bad?




If this NAFTA thing is so bad, why is unemployment at 5% (very low historically), manufacturing production up, and productivity at an all-time high? No doubt there have been certain sectors of the Ohio economy that have lost out and not stayed competitive. However, does this mean our society should live the equivalent of an 8-track lifestyle when the MP3 lifestyle is possible? Moving jobs to Mexico has made us more productive as a nation and raised the standard of living for millions of Americans, and Mexicans.

Yes the Mexicans do not have the same environmental standards we do and yes they earn less per hour. However, these workers are also much less productive, thus the lower wages. Their standard of living has not gotten to the point where they can make a trade off between food and shelter and a cleaner environment. This is very much like the US 100 years ago.

As the Mexicans become more productive and their wages rise, their citizens will demand a cleaner environment. Until then, they must take care of the basic human necessities. Re-working NAFTA will not make Mexico's environment better, it will make it worse.

Be very suspicious of those that say Free Trade is bad for America. There is usually a special interest lurking in the background. Free Trade always has, and always will, make society more prosperous.

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