Jeremy, this question is not rhetorical or meant to diminish you. But do you know how NAFTA works, ie. the mechanics?
Conceptually I like free trade. Conceptually I believe in it in a way similar to how Will described it, which is that this is not a perfect world and that there are products and services provided in other nations that receive dramatic subsidies etc and are not freely traded. Therefore a nation with goals of free trade needs to respond to those outside influences. It has been said that the greatest tax break in the world to Americans has been free trade, wherein products that Americans once produced at higher prices became dramatically less expensive when produced elsewhere at lower prices. I emphatically believe that. Now I have a problem with the theoretical loss of all manufacturing. That scares me. A goal of free trade is one I like. How exactly to move there.....well like most challenges its all in the details.
Manufacturing still makes up 15% of our economy, what we have left is the high end manufacturing that requires some skill and education.
Sorry, manufacturing as a percentage of our overall economy (GDP) is 15%. Is that better? Say our economy is a pie, 15% of the pie is built around manufacturing.
Well, what NAFTA changed when it was brought in. What NAFTA actually facilitates as it relates to trade.
Changed? It eliminated the majority of tariffs on everything except agriculture. What it facilitates in theory is an elimination to punishing one country on import/export in an effort to equal the playing field artificially..
People against free trade believe that free trade takes jobs away from their own country. For example, because the United States and China are on good terms and have low tariffs, it's cheaper for Americans to buy Chinese goods than American-made goods. This means that a lot of Americans lose their jobs. However, what people don't realize is that through free trade, everyone benefits. Hypothetically, if China devotes all of its workers to product A, America devotes all of its workers to the production of product B, and the two countries trade with each other freely, America and China will have more of products A and B than if they worked independently.
In theory. By eliminating tariffs and restrictions, goods in one zone that are banned can be imported into another. Also, foreign (ex-Nafta) goods can be value added in a NAFTA zone, then transported to another NAFTA zone by passing tariffs that would otherwise be imposed on the ex-NAFTA goods. What it has not done is create a Mexican market place, or increased social conditions in Mexico. Instead, it has produced a low cost labor ghetto with questionable envorinmental/labor practices that would not be tolerated in the two northern NAFTA zones. When they talk about the cost of North American labor being too high, this is because North Americans do not live 3 generations to a dwelling, and their children receive health care, pensions and education. This is hypothetically true, however Chinese investment is difficult to accomplish, and their currency manipulations and labor practices give them a totally unfair advantage over North American businesses.
Do keep in mind that most if not all of the credit for the social climate and economic woes of the people of Mexico belongs with the Mexican government.. It's not wonder these people come here illegally seeking the DREAM.. NAFTA did not create those problems. They already existed. Sure, people are going to cheat.. But the idea is and was to bring the entire North Americas and South Americas into the fray... Not just Canada, US and Mexico.. There are Americans living three generations to a dwelling, without health care or pensions as well.. There are also quite a few Mexican Americans doing quite well.. My neighbors came here, LEGALLY.. learned the language work hard and I'll damned if they don't have the neatest house, cleanest yard, and manicured lawn on the block.. Couple that with the fact that aside from myself and a few others, ALWAYS have the American flag flying high! Blaming NAFTA for three generations of Mexicans in a single home is again, not a problem created by NAFTA.. It already existed..
Exactly! Young people don't remember what it was like back when the unions which strangled the life out of Detroit were strangling the whole country. They don't appreciate that the Japanese competition has made not only Japanese cars better -- but has actually made American cars better as American car manufacturers were forced to compete. These people don't appreciate how much better their lives are because of the goods and services provided by their brothers and sisters overseas. That also is a function of age. At one time, other men made the same argument regarding agriculture. Can you imagine how poor America would be today if we had rejected the jump to manufacturing in an effort to save our agricultural economy? A better way to think of it is that you are not "losing" manufacturing, you are "delegating" it.
Ha, Will: we disagree on some issues but tend to agree here. Theoretically I like your argument. I also acknowledge and agree with your comments that reflect moving toward free trade in an imperfect world...I believe you cited the competition essentially between Boeing and Airbus. In practicality there are a variety of issues with free trade that create societal problems within America of various types. They should be looked at. Loss of certain types of manufacturing that could be considered vital for security, national defence, loss of types of manufacturing that might make the US susceptable to political/financial blackmail etc. are issues that I would look at. Electronics, cars, phone equipment, etc; so much stuff like that has seen manufacturing move overseas with far lower costs to the consumer and far better products. In some regards that loss of jobs is not totally a function of lower labor costs but a function of a host of other factors; quite numerous. Still, the long history has seen dramatically lower prices to Americans for products that ended being both superior in quality and lower in price than what Americans were producing. Competition. Its a great thing!!!!!!