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In the case of NAFTA, the benefits flowing to Mexico seem to have resulted more from the general liberalization of trade and investments than directly from NAFTA, as such. That is, the general liberalization of trade and investments that accompanied NAFTA led to a general increase in Mexican exports and inflows of FDI, which increased specialization, competition, productivity and efficiency in Mexico. But the increase in total Mexican exports and FDI inflows from the rest of the world was as large or larger than that from the United States.
In this paper we use household survey data to study the evolution of income distribution in Mexico over the last decade, a period of rapid integration to the global and North American economies -- "globalization" for short. ... Our findings strongly indicate that globalization has not raised income inequality in Mexico. On the contrary, we present compelling evidence showing that income distribution is more equitable in states that are more closely linked to the world economy and that those states exhibit larger declines in inequality. We also find some statistical evidence suggesting that deepening globalization results in reduced inequality, although our results are sketchier on this point, perhaps because such effect is only observable in the long run. As a potential explanation of why globalization might improve the distribution of income among Mexican households, we show that states that are more integrated to the world economy offer better work opportunities for low-skilled women relative to more educated female workers.
The implementation of NAFTA benefited the United States by increasing competition in product and resource markets, as well as by lowering the prices of many commodities to U.S. consumers. Because the U.S. economy is so much larger than Mexicos, however, U.S. gains from NAFTA as a proportion of its GDP were much smaller. Canada was the least affected by NAFTA because Canada had already negotiated a free trade agreement with the United States in 1988, and so most of its economic effects had already taken place by the time NAFTA came into effect in 1994.
the Canadian tariff concessions raised labour productivity by 15 percent in the most-impacted, import-competing group of industries. This translates into an enormous compound annual growth rate of 1.9 percent. The fact that the effect is smaller and statistically insignificant at the plant level suggests that much of the productivity gain is coming from market share shifts favouring high productivity plants. Such share shifting would come about from the growth of high-productivity plants and the demise and/or exit of low-productivity plants.
... The plant-level numbers indicate that the FTA raised labour productivity in manufacturing by 7.4 percent or by an annual compound growth rate of 0.93 percent. The industry-level numbers are about the same. These numbers, along with the 14-15 percent effects for the most-impacted importers and exporters, are enormous. The idea that an international trade policy could raise labour productivity so dramatically is to my mind remarkable.
... Most commentators expected Canadian wages to fall in response to competition from lessunionized, less-educated workers in the southern United States. ...For all workers, the tariff concessions raised annual earnings. For example, the total FTA impact is a rise of 3 percent at both the industry level and the plant level. ... At the plant level, earnings rose for both production and non-production workers. At the industry level, earnings gains were concentrated among production workers. ... a 3 percent rise in earnings spread over 8 years will buy you more than a cup of coffee, but not at Starbucks. The important finding is not that earnings went up, but that earnings did not go down in response to competitive pressures from the U.S. South.
... There is a presumption in the popular press that anything to do with globalization will worsen income inequality. It is thus reassuring that there is absolutely no evidence that the FTA worsened income inequality.
Sorry. I'll try to find it.
Here it is.
http://www.google.com/url?sa=t&sour...sg=AFQjCNGsbiwEi2ZYyjODcCKCfJmi-UQdxA&cad=rja
Sorry. I'll try to find it.
Here it is.
http://www.google.com/url?sa=t&sour...sg=AFQjCNGsbiwEi2ZYyjODcCKCfJmi-UQdxA&cad=rja
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Originally posted by Ghook93
God you're dense, would you go ahead and die already, J/K (sort of).
Originally posted by uscitizen
You just have no sense of humor at all.
José;3627492 said:Originally posted by Ghook93
God you're dense, would you go ahead and die already, J/K (sort of).
tsk, tsk, tsk...
You said elsewhere you were a good wrestler, Hook, and trust me, you say this to my face, pal, and you're gonna REALLY need all your fighting skills!!
Originally posted by uscitizen
You just have no sense of humor at all.
Just ignore Ghooknose, citizen.
Now listen to me. I demand that you stay with us for the next 20 years and don't you dare disobeying my direct orders!!
Bill to Repeal NAFTA Stalled in the House | Economy In Crisis
NAFTA has done way too much damage, and we need to repeal it. NAFTA has cost too many jobs, eroded our industrial base and decimated towns and communities, he said in a statement.
Enough is enough we need to focus on creating jobs right here in the United States not in foreign countries.
The bill currently has just 10 co-sponsors: Democratic Reps. Joe Baca, Lynn Woolsey and Bob Filner of California; Michael Capuano (MA), Peter DeFazio (OR), Marcy Kaptur (OH), Larry Kissell (NC) and Michael Michaud (ME).
Two Republicans are also backing the legislation: Texas Ron Paul and North Carolinas Walter Jones.
The bill has be referred to the House Ways and Means Committee, but no action has been taken on it since that time.
Prior to the implementation of NAFTA, the U.S. held a small trade surplus with Mexico of approximately $10 million. By 2007, that surplus had turned into an astounding $91 billion trade deficit. With Canada and Mexico combined, the U.S. has taken a $24 billion trade deficit prior to NAFTA and turned it into a $190 billion deficit - a 691 percent increase.
NAFTA was also supposed to usher in a new age of prosperity among the American people as thousands upon thousands of good-paying jobs were to be created through the increase in trade surplus that never quite came to fruition. As you can imagine, just the opposite happened. Each and every year more and more jobs are outsourced to Mexico where labor is incredibly cheap and environmental concerns are a mere afterthought. The raft of jobs outsourced to Mexico forced American workers into direct competition with one another and drove down wages for all.
Now Americans are forced to compete, not only with one another, but also with Mexican workers who are willing to work for much less than the average American. In the U.S., the average factory worker makes roughly $18 per hour while his Mexican counterpart earns just $3 per hour. This has encouraged a race to the bottom in which American companies are frequently relocating production facilities across the border. Iconic American companies such as Coca Cola, Ford, RCA, General Motors, General Electric and Nokia have all opened up assembly plants in Mexico. In fact, GE employs 30,000 Mexicans in 35 factories in the country.
This race to the bottom has had a devastating effect on Americas manufacturing base. Pre-NAFTA, the U.S. had 16.8 million people employed in the manufacturing field. By 2007, that number was down to just 13.9 million. That accounts for over 20 percent of Americas manufacturing jobs over the past 14 years. Those good-paying manufacturing jobs have been replaced by low-paying service sector jobs with little or no benefits.
The failure of NAFTA could not be evidenced more clearly than through the influx of illegal immigrants that have entered the U.S. since 1993. Illegal immigrants in the U.S. have increased to 12 million today from 3.9 million in 1993, accounting for an overall increase of over 300 percent.
