Why Bain Killed Good Companies and Good Jobs - I Break It Down

[Iggy]

21. Good Points, However...

anyone here remember NAFTA??

North American Free Trade Act? pushed for by numerous democrats in congress and President
Bill Clinton?

it's past time to look at just how devastating NAFTA was to U.S. workers/jobs and the fact it's a
gigantic failure in terms of what it was supposed to do in Mexico-- raise wages/income of the
workers there and improve working conditions there.

Most of the debate about NAFTA has focused on the movement of plants to Mexico and the direct loss of American jobs as Mexican laborers earning less than $2 an hour are used to replace American workers making six or eight times as much, plus health and pension benefits. Though there are trade disputes with Canada regarding specific industries, America's partnership to the north does not spark the same kind of fundamental concern. Income, living conditions and the rule of law are similar in Canada to U.S. standards, which puts trade on a more level playing field.

The news media has tried to downplay the celebration of NAFTA's first decade, arguing that while the grandiose benefits from "free trade" have not materialized, the American job loses to Mexico have not been as bad as critics predicted. But saying that NAFTA's failure could have been worse is not exactly the kind of verdict that warrants a grand gala.

One of the most infamous predictions of NAFTA benefits was made by Gary Hufbauer of the Institute for International Economics, a well-financed "free trade" think tank. In a 1992 study, Hufbauer claimed, "NAFTA will generate a $7 to $9 billion surplus that would ensure the net creation of 170,000 jobs in the U.S. economy the first year." This did not happen, of course, and as the Wall Street Journal reported in its October 26, 1995 edition, "Gary Hufbauer...whose predictions of NAFTA job gains were embraced by the Clinton and Bush White Houses now figures the surging trade deficit with Mexico has cost the U.S. 225,000 jobs."

Here's an example of what NAFTA did to manufacturing jobs in the U.S.-- prior to NAFTA some clothes were actually made in the
United States.. one company was Fruit of the Loom (yeah, the company that makes your tightie whities). after NAFTA was enacted
more or less all clothing companies in the U.S. moved out- to the macquiladoras in Mexico and central America-- all but Fruit of the Loom. they insisted they would stay in the U.S. and actually spoke out against NAFTA.

of course the greedhead clothing companies that moved out of the U.S. began selling cheaper clothes in the U.S., which
Fruit of the Loom could not compete against-- since they were paying a living wage to their U.S. workers.

Yep, you guessed it-- Fruit of the Loom ended up moving their manufacturing facilities out of the U.S.- so they could compete. if you can't
beat 'em, join 'em!

So thanks Bill Clinton and "democrats" in congress-- thanks for aiding and abetting the destruction of manufacturing
jobs in the U.S.

http://americaneconomicalert.org/view_art.asp?Prod_ID=715