Friday, April 06, 2007

Re-Thinking Free Trade and NAFTA

In 1994 the NAFTA agreement involving the U.S.A. Canada and Mexico was signed to the extreme displeasure of Unions and Presidential hopeful Ross Perot.
Since the agreement many automobile manufacturing jobs have been lost to Mexican cheap labor. The same thing has happened to the manufacturing of clothing and head wear, but these jobs have not been lost to Mexico.
With President Nixon's re-opening trade with China in the 1970's the steady flow of jobs manufacturing textiles and head wear has been to the sweatshops of China and third world countries.
You cannot go into a department store or sports shop without finding the majority of the caps, shirts and shoes are made in Vietnam, Taiwan, Hong Kong, Indonesia, Nicaragua or the Philippines.
Most of the labor is done in "sweat shop" conditions by children as young as 5 years old. These children make an average of five dollars a day for 10-12 hours work with no benefits, in cramped non-climate controlled conditions.
In Indonesia 12 year old children work 70 hours a week making shoes to be sold by American companies in the U.S.
The Nike "Air Max" shoes that sell for $140.00 and the sports shirt with the famous Nike "swirl" selling for $39.00 are both made in Pakistan.
Half the worlds soccer balls are made in Pakistan by children as young as five years old working for $5.00 a day!
In the GAP stores you can find pricey clothing that was made in Saipan by Chinese women working for a monthly salary of $60.00. The same amount of profit the Gap makes on average for every shirt sold.
The once mighty steel industry has declined to the point where exports of U.S. steel have declined from 79 million tons in 1989 to 52 million tons in 2001. At the same time our imports of steel from Taiwan has increased by 133%.
This shift from an exporting surplus to an import consumer is estimated to have cost over 500 million dollars in National income, and cost the consumer of products made of steel from 1.9 billion dollars to 4 billion dollars a year.
Much of the blame must be laid at the feet of the Unions whose contract demands exceeded that which the steel companies could absorb and still be profitable.
Not all the blame is at the unions feet. The "free Trade" policies of our government have made many countries wealthy that were previously considered "third" world countries. China is a perfect example. They now produce 418 million tons of steel even though they have scarce iron and steel resources.
Millions of skilled laborers who were part of the United States military industrial complex have lost their jobs to foreign countries. This happening is much to the delight of the leftists who hate the military and await the time when labor unrest will allow them to begin the American equivalent of the 1917 Russian revolution.
My concern is the lack of the ability to produce adequate tanks, ships, and guns in the event that we find ourselves in a full scale war in the future.
Lest you forget even the uniforms worn by many servicemen are made in foreign countries. Have we made ourselves weaker by allowing unfettered Free Trade?

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