America’s manufacturing has gone from powerhouse to powder puff and our politicians seem to be glossing over the real issue of unfair trade agreements. Last year America lost an average of 23 manufacturing facilities everyday and that is after being the biggest industrial power in the world after World War II. How did the United States of America go from being a powerhouse to being a powder puff?
Well it is very easy to look at the unfair trade agreements our politicians seem to sign America into. The first one I remember is NAFTA (North America Free Trade Agreement) which Ross Perot warned about debate after debate in the early 1990′s. In fact he said we would hear the great sucking sounds of America losing jobs and manufacturing to what they called a fair free trade agreement.
What is a free trade agreement?
A free trade agreement is an intergovernmental agreement which may eliminate tariffs, import quotes and preferences on some goods and services traded. There is also sometimes an open border agreement that allows free movement of people between a group of countries. It is my belief that somewhere hidden in NAFTA is an open border policy of some sort as Mexican truck drivers are now freely entering the United States delivering goods. And it makes sense after all they did build the Texas Trans Corridor with that in mind.
How are the free trade agreements unfair?
Well free trade agreements are not all unfair however, they can be for example an American worker can not compete with a Mexican worker when it comes to wages. The average American worker has a higher standard of living than those in Mexico so in order to compensate for this America would put a tariff on goods or services coming from Mexico into the United States to balance the field. After all since your country has a low standard of living with low wages you can not expect our goods or services to compete as it’s not fair.
This same scenario exist with China also as they pay slave wages to their employees, subsidize their important industries and on top of that they have an artificially low currency rate which really drives down the prices of goods and services they ship to us. Now folks how can American workers compete in a global market without seeing either a very steep decline in wages and standard of living or worst just an all out run for the border of our industries.
Some of the hardest hit states from manufacturing jobs were Ohio with a loss of 38 percent, North Carolina losing 42 percent and Michigan with a whooping loss of 48 percent of it’s manufacturing jobs and that’s only from December 200 through December 2010
So when you hear President Barack Obama speak about The American Jobs Act it’s a scam the only thing that needs to happen are changes to our lopsided free trade agreements and get regulation out of the way for businesses looking to grow in the United States. The only thing politicians are looking to do is get our country further in debt as our national debt recently passed the 15 trillion dollar mark. Folks does it make since to spend money when you can simply change trade agreements so they are fair.
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