Nafta was a great idea on paper. After all, according to economists, trade makes everyone better off, right? Well, sort of. Trade makes the seller and the buyer better off, but it does nothing for the seller's employees.
Let me simplify: Let's say that I have a factory and I make lamps in the US. I can sell them for only so much and still sell them. Buyers are not very willing to pay a higher price than some arbitrary amount. So I found out I can relocate my plant to Mexico. In Mexico I don't have to pay very high labor wages to my employees there. Not only that, but i don't have to pay social security taxes, or health benefits, or deal with union problems. great! I get to keep more of the manufacturing costs in my pocket, and since there is free trade between Mexico and the US, I can just truck them over without paying import tariffs on my lamps. And then I sell the same lamps for the same price, but since it cost me less to make them, I end up a winner.
But by moving that plant away from an American town, I deprived that town of all the jobs that are now being performed by non-US citizens in a non-US country.
Nafta only benefits the foreign workers and the business owners. Yeah, the consumer gets to keep a little of his money because the price of goods remains low. BUT.... that is if you have a job that provides you money to spend on those goods.
Clear enough?
2006-12-19 14:41:23
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answer #1
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answered by anon 5
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Because Americans now have a sense of entitlement. They (we) do not want to learn new skills in order to keep up with a changing world. They would rather work at the panty factory for the next 30 years as opposed to improving their educations and job skills.
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2006-12-20 00:26:45
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answer #2
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answered by Zak 5
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Because they are misinformed. After all, some Americans disapprove of teaching evolution in public schools as well...
2006-12-20 13:15:30
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answer #3
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answered by NC 7
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Because people who refuse to quantify outsourcing will shriek and shriek and shriek and shriek and shriek.
2006-12-19 23:30:41
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answer #4
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answered by Anonymous
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