Was NAFTA a good idea?
Asked by
JLeslie (
65721
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January 27th, 2017
from iPhone
I remember when it was enacted (is that the right word?). I was fairly young, and I remember wondering if it was a good idea. It seemed odd to me to open trade borders like that when the border is shared by one country (two I guess if we count Canada) that is a very prosperous, industrialized country, and on the other side a country with weak and unstable currency and cheap labor.
I didn’t know enough about the possible economic impact or other impacts for that matter, so I wasn’t opinionated at the time, but rather more curious than anything.
Now, here we are years later and I find myself thinking about what happens if NAFTA is dismantled. Will it bring jobs back to America? Will it hurt Mexico’s economy? Will even more Mexicans be trying to cross our border for work?
I know a lot of jellies hate and fear Trump, but if we can keep this more about a discussion specific to NAFTA and the impact it has had on the US and what you think the impact will be if it disappears.
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8 Answers
NAFTA is a great idea because it really is a global community that we live in. Keeping everything here in the states just ups the prices we have to pay for everything and we all deserve to have the opportunity to buy the best products at the best prices.
It’s pretty hard to pay for anything without a job. While it increases the volume of trade it really is only serving those at the top, the big trans-nationals. Small businesses and startup manufacturers cannot compete.
@kritiper I would be totally for globalization if all other participating countries had to maintain and enforce (via an independent 3rd party) the same standards of labor, health/safety, environmental protection, etc. as we do here. Then sure, let the free market sort things out based on workmanship and productivity.
As it stands now, it’s simply a vehicle for the major companies to exploit cheap labor, and workers who have no protection. This is often caused by US interference, for example Hillary Clinton’s team went to work reducing the minimum wage in Hati to keep her donors happy.
I would have to ask for whom? For the employers and their shareholders here in the US yes, it worked out well for them. For the American workers, not so much. For the American Consumer, sure, cheaper goods more crap to purchase For the wealthy in Mexico who were able to sell their land to American companies or cut deals to move facttories, Yes. For the average Mexican laborer, kind of a mixed blessing, yes, they had a job but it paid little. Of course there are those who say a little is better than nothing but those are mainly factory owners. Not sure of the effect on Canada but I imagine it was along similar lines regarding moving factories and production to Mexico. I doubt many US businesses relocated there.
As I recall, one of the most common refrains regarding it was “Afta Nafta comes the shafta” and that is pretty much what the US worker got.
NAFTA is likely a better deal for Mexico. The Wall Street Journal today said that most economist say that the Impact of NAFTA on the USA is minimal.
President Trump seems to disagree stating that, “The US has a $60 million trade deficit with Mexico. It has been a one sided deal from the beginning of NAFTA with massive numbers”.
If Trump can negotiate a better deal than NAFTA then more power to him.
The law of comparative advantage in economics says that total productivity is highest when all nations produce and freely trade what is most profitable for them. Tax barriers get in the way. If the U.S. were to withdraw from NAFTA, prices would go up and total productivity would go down, meaning that overall people would end up with less.
@gorillapaws That is true. Still, capitalism rules…What ya gonna do???
It’s been a disaster for Canada.
I’d much rather be part of the TPP and get Canada out of NAFTA – sooner rather than later.
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