Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

NAFTA Has Resulted in Increased U.S. Unemployment

Politics / US Economy Jul 27, 2010 - 07:40 AM GMT

By: Global_Research

Politics

Best Financial Markets Analysis ArticleMark Vorpahl writes: On July 7, 2010, President Obama made the following remarks: We're also reforming our own restrictions on exports, consistent with our national security interests. And we hope to move forward on new agreements with some of our key partners. I've instructed U.S. Trade Representative Ron Kirk to begin discussions to help resolve outstanding issues with the pending Korean Free Trade Agreement before my visit to Korea in November. It's an agreement that will create new jobs and opportunity for people in both of our countries.


We also want to deepen and broaden our relations with Panama and Colombia. So we're working to resolve outstanding issues with the free trade agreements with those key partners, and we're focused on submitting them as soon as possible for congressional consideration.

If President Obama’s promise that these Free Trade Agreements (FTA) will create new jobs conjures up a sense of deja vu to those hearing these words, this is entirely explainable. In 1993 President Bill Clinton said of the signing of NAFTA:

We will make our case as hard and as well as we can. And, though the fight will be difficult, I deeply believe we will win. And I'd like to tell you why. First of all, because NAFTA means jobs. American jobs, and good-paying American jobs. If I didn't believe that, I wouldn't support this agreement.

North American Free Trade Agreement’s (NAFTA) Results

President Clinton could not have gotten it more wrong. According to an analysis by the Economic Policy Institute (EPI), the number of U.S. jobs created by export expansion in relation to the number of U.S. jobs lost to the growth of foreign imports because of NAFTA in its first ten years resulted in a net loss of 879,280 jobs. (See "NAFTA – Related Job Losses Have Piled Up Since 1993" by Robert E. Scott.) This is not to mention the downward pressure on U.S. workers’ wages NAFTA created, which contributed to their relative stagnation since the mid 70s.

NAFTA allowed U.S. corporations to more easily move their investment funds across the Mexican/U.S. border to set up new production facilities, while closing down similar factories in the U.S. They were happy to do this because of Mexico's cheap wages and less regulated labor and environmental standards. This created huge profits for the business elite but resulted in deteriorating conditions for workers on both sides of the border. U.S. workers were forced to face wage cuts or unemployment, and Mexican workers lost their traditional jobs, and farms and were forced to work in near slave labor conditions in U.S. corporate facilities within the economic zones called maquiladoras.

NAFTA's free trade was a boon for Wall Street, but a bust for Main Street. President Obama is resurrecting President Clinton's failed promise of NAFTA’s jobs creation in hopes of selling the public on the Korea, Colombia, and Panama FTAs. With nearly half of U.S. workers having lost a job or experienced a cut in wages since the recession started in 2007/2008, combined with a jobless "recovery," the need for jobs is first and foremost on U.S. workers’ minds. However, this time around, after the experience of NAFTA, the promise of jobs creation comes off like a cheap gimmick used too many times, as if to sell a shoddy "lemon" used car as good coin. All three of the trade agreements Obama is pushing are modeled after NAFTA. There is absolutely no reason to expect different results when it comes to jobs creation.

New FTA Consequences

For instance, when it comes to the Korean Free Trade Agreement, another study by the EPI estimates that it would likely displace 888,000 existing or potential U.S. jobs. This would include many union jobs in heavily organized sectors of the U.S. economy such as auto. The Korean Free Trade Agreement would make it easier for corporations involved in automobile production to outsource U.S. jobs to Korea in search of cheaper wages and bigger profits, further decimating the ranks of the United Auto Workers. While there would be some job creation in industries related to exports, according to the EPI study, U.S. workers would still be faced with a net loss of 322,000 jobs by 2015. (See "Economic Impacts of Korus-FTA" page 6, by Robert E. Scott.)

In addition to threatening U.S. jobs and wages, by promoting FTAs with nations such as Panama and Colombia, the administration is further exposing its lack of concern when it comes to corruption and workers' rights abroad. Panama was identified by the Government Accountability Office as one of eight countries listed on all the major tax haven watchdog lists. An FTA with Panama would increase its ability to act as a money-laundering center. Colombia is the most dangerous nation in the world to be a union member, with 2,300 labor advocates assassinated since 1991. An FTA with Colombia would give its government further strength and motivation to trample on workers’ basic rights.

The fact that these trade deals are being pushed during hard times for U.S. workers is another example of how the U.S. political establishment is captive to corporate and Wall Street big money interests as opposed to the aspirations of the majority who voted for Obama in hopes of change. What U.S. workers need is a serious, massive jobs-creation program now, not dressed up policies that result in job losses.

The Same Goal?

Towards the conclusion of his recent remarks President Obama said:

For a long time we were trapped in, I think, a false political debate in this country where business was on one side, labor was on the other. There were partisan divides. The argument was either you were pro-trade or you were anti-trade. What we now have an opportunity to do is to refocus our attention where we're all in it together. Businesses, workers, government - everybody is focused on the same goal.

Unfortunately, as the FTA policies he is promoting attest to, Obama's notion of "we're all in it together" is that workers do all the sacrificing while big business reaps all the profitable benefits. This is not a partisan divide between Democrats and Republicans. While holding the presidency, the Democrats have proven themselves to be the most effective party for passing FTAs with Republican support. Rather, it is a class divide. While Wall Street is hoarding taxpayer paid-for bail outs and high unemployment continues, it could not be clearer that it is impossible for the corporate owners and working people to be focused on the same goal. What is good for one class of people comes at the expense of the other. The FTA policies that President Obama is advocating, with Wall Street’s support, will hurt U.S. workers. No amount of labor friendly amendments to these FTAs can fundamentally change this.

Labor's Chance to Lead

Labor needs to take the lead in opposing the FTA’s that Obama is pushing and struggle for the creation of 15 million jobs along the lines that AFL-CIO President Donald Trumka has spoken of recently. It is not enough to pay visits to Congressional representatives and Senators in lobbying campaigns. Such an approach failed to defeat NAFTA, pass Single Payer Health Reform, or pass the Employee Free Choice Act, etc. A bold unambiguous show of unity and strength is required to win jobs at Wall Street's expense and defeat FTAs that hurt workers. Labor needs to galvanize its tens of millions of supporters, as well as all of its allies and hit the streets in a massive way.

The recent news of the AFL-CIO's Executive Boards support for building demonstrations on October 2nd in D.C., Louisiana, Arizona, and San Francisco is of historic importance. (See AFL-CIO Backs October 2nd March in Washington DC for Jobs, Justice and Peace.) Should these demonstrations be actively built nationwide, they could play a role on par with Dr. Martin Luther King’s March on Washington in 1963 in mobilizing the vast majority of working families into the streets for jobs as an unambiguous expression of what is most important in their minds. That is, this outpouring of popular sentiment for jobs at the expense of Wall Street could prove to be pivotal for putting workers' rights on the political front burner as the March on Washington was for Civil Rights. If so, it is all the more likely that the Korea, Panama, and Colombia FTAs will be left to wither on the vine.

Mark Vorpahl is a union steward as well as an anti-war and Latin American Solidarity activist. He can be reached at Portland@workerscompass.org.

Mark Vorpahl is a frequent contributor to Global Research.  Global Research Articles by Mark Vorpahl

© Copyright Mark Vorpahl , Global Research, 2010

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules