I was not able to watch the State of the Union address last night so reading the transcript on CBS news and the Internet is a Marvel to be able to pull up answers to questions. For Instance this section of the address. Finally, if we are serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, and law enforcement – and fix our broken immigration system. Republicans and Democrats in the Senate have acted. I know that members of both parties in the House want to do the same. Independent economists say immigration reform will grow our economy and shrink our deficits by almost $1 trillion in the next two decades. And for good reason: when people come here to fulfill their dreams – to study, invent, and contribute to our culture – they make our country a more attractive place for businesses to locate and create jobs for everyone. So let’s get immigration reform done this year. I wondered if these forecasts come from the same economists that talked about the wonders of Globalization in general and NAFTA in particular so googled for Economist projections for NAFTA and found this paper. citizen.org/documents/NAFTAs-Broken-Promises.pdf clearly these folks have an agenda and I am not fully capable of a fact check but this section seems to bare some resemblance to my own anecdotal observations. After nineteen years of NAFTA, we can measure its actual outcomes. The grand promises made by proponents remain unfulfilled. Many outcomes are exactly the opposite of what was promised. Many U.S. firms used the new investor protections to relocate production to Mexico to take advantage of its low wages and weak environmental standards and to attack NAFTA countries’ environmental and health laws in foreign tribunals. Over $340 million in compensation to investors has been extracted from NAFTA governments via these “investor-state” challenges. The small U.S. trade surplus with Mexico pre-NAFTA turned into a massive new trade deficit. The pre- NAFTA U.S. trade deficit with Canada expanded greatly. Overall, the inflation-adjusted U.S. trade deficit with Canada of $29.1 billion and the $2.5 billion surplus with Mexico in 1993 (the year before NAFTA took effect) turned into a combined NAFTA trade deficit of $181 billion by 2012.1 The Economic Policy Institute (EPI) estimated that the NAFTA deficit had eliminated about one million net American jobs by 2004.2 Meanwhile, U.S. food processors moved to Mexico to take advantage of low wages and food imports soared. U.S beef imports from Mexico and Canada, for example, have risen 130 percent since NAFTA took effect, and today U.S. consumption of “NAFTA” beef tops $1.3 billion annually.3 The export of subsidized U.S. corn did increase, displacing over one million Mexican campesino farmers. Their desperate migration pushed down wages in Mexico’s border maquiladora factory zone and contributed to a doubling of Mexican immigration to the United States.
Posted on: Thu, 30 Jan 2014 01:42:44 +0000
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