Has America Lost Jobs Because Of NAFTA?

That’s what John Edwards is saying:

Cedar Rapids, IOWA (AP) — Democratic presidential contender John Edwards on Monday criticized former President Clinton, arguing that he allowed corporate insiders to shape the 1993 North American FreeTrade Agreement that has cost U.S. jobs.
Edwards’ complaints about the former president beloved by voters in his own party was a defiant move meant to highlight rival Hillary Rodham Clinton’s relationship with special interests. It comes two days after Clinton refused Edwards’ challenge to stop taking campaign donations from lobbyists, saying many represent good causes.
“It’s time that the president stood up and fought for American orkers,” [sic] Edwards told a crowd of about 300 people at a union hall in Cedar Rapids. “It’s time to have a president that always puts he interests of the American people first.”

Has NAFTA cost America jobs? I don’t think it has. NAFTA went into effect on January 1st, 1994. According to figures from the Bureau of Labor Statistics, the number of people employed in America (total non-farm) has gone from 108,313,000 to 138,122,000 between January of 1992 and July of 2007. Here’s a chart (click for full size):

image

That’s an increase of about 30,000,000 jobs.
Further, in 1992 the unemployment rate was 7.6%. It is now 4.6%, with a low-point of 3.8% coming toward the end of the Clinton administration:
image

So as far as Edwards’ comment about NAFTA losing us jobs, he is either lying or he has no idea what he’s talking about.

Tags: , , ,


«
»
  • http://762justice.com/ Sniper One

    I’m not sure that raw employment numbers tell the whole tale. There are alot of factors that go into those numbers.

    I don’t know if NAFTA has cost Americans jobs or not, but I don’t think the numbers you show are really going to tell the tale one way or the other.

  • http://proof-proofpositive.blogspot.com/ proof_positive

    Edwards is a rank populist and is either a liar or has no idea what he’s talking about.

    Edwards is a rank…liar…

  • 2Hotel9

    Trial Lawyer Fuckbags(TLFs) have driven more jobs out of America than free trade ever even contemplated. UnionScum Fuckbags(USFs) are the only ones running a higher kill score on American jobs.

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    Mercenary trial shysters like Edwards and labor goonion thugs have cost this country millions in jobs.

  • http://proof-proofpositive.blogspot.com/ proof_positive

    For the year 2006, the minimum daily wages, by zone, were: Zone A (Baja California, Federal District, and larger cities) $4.12 (46.80 pesos); Zone B (Sonora, Nuevo Leon, Tamaulipas, Veracruz and Jalisco) $3.99 (45.35 pesos); Zone C (all other states) $3.87 (44.05 pesos).

    Anna: Please don’t confuse the combatants with facts! You’ll change the tenor of the whole argument! :)

  • http://www.bikebubba.blogspot.com/ Robert Perry

    As Edie’s point makes clear, some workers did lose their jobs when factories relocated to Mexico. Ask someone who used to work at Levi’s or Wrangler, for example.

    The analysis our gracious host is simply a single-variable understanding of a system with many variables–irredeemably flawed, sadly.

    I do believe that making trade as free as possible, within the parameters of national security and so on, is a good thing. However, we cannot simply take a look at overall employment and GDP numbers and say that this statistic “proves” anything.

    Rather, the argument for free markets is very simple; is it more just to deny consumers the greatest selection of goods possible, or is it more just to allow as many goods as possible into the marketplace without undue burdens of taxation?

    If we view the dollar of the consumer as his own, we quickly find that there is a moral imperative for free trade in allowing him to retain and use as much of his property as possible.

  • dk2

    I don’t think you have an idea – the numbers on jobs lost are misleading in that they bump people of the roll of unempolyment when their benefits run out – do you really think those govt figures cover everyone?

    Who do you think is counting the ones when their unemployment runs out?

    Believe it or not Edwards is correct on it.

    I could create all kinds of graphs and come up with all kinds of figures too, but that doesn’t mean they would be correct any more than the ones you have here.

    Edwards is the best choice for 2008 – too bad more who think they know more than him, can’t get a grip on it.

  • edie

    From a personal perspective I lost the best job I ever had when the company closed our plant and opened another in Mexico. They paid those workers $.60 and hour, no retirement or health benefits and had no payroll taxes to deal with. Within sight of 3 years they had to close that plant in Mexico because they could not find enough workers. The Mexican citizens could at that wage work for 3-4 months and quit to live comfortably the rest of the year.

    In a recent survey done by the local news media 85% of those who lost their jobs were now working for a decreased wage and fewer benefits.

    From my point of view NAFTA has greatly impacted this area.

    So, Just keep on buying those cheap goods and we will all just sit back and watch Coroprate America continue to rape the American citizen. If we do not create the demand for quality American made goods at a reasonable price then we will get more of the same.

    I wish I still had those ads for a certain big box store when they were just starting up. (I know you all have been in one at least once) They said that 75% of all their merchandise will be American made. Years later and more than a few market shares later you are hard pressed to find 10% American made products in their stores.

    Wake up our garment industry is nearly gone. Electronics is falling away. The auto industry is limping. Buy American should be our battle cry.

  • jon doe

    Since NAFTA was signed, real hourly wages are up nicely. However, they only went up a few percent in manufacturing. Other sectors saw strong wage growth.

  • http://www.bikebubba.blogspot.com/ Robert Perry

    There is no obfuscation on my part here, but rather simply the point that aggregate statistics can never quantify the local impacts of a treaty. In the past dozen years of so, you have NAFTA, tax cuts, the war on terror, and more things impacting those aggregate employment statistics. Just because you can’t see something in aggregate statistics doesn’t mean it’s not there. It means that you’ve got about 5236 variables, and you’re just looking at one of ‘em.

    What I’m saying here is not that the end point is wrong–that NAFTA may be a benefit–but rather that your evidence can never prove it.

    And I would encourage you to file it with the gold standard comments, but only after you purchase some decent penny candy.

  • http://sayanythingblog.com/readers/author/Anna/ Anna

    For the year 2006, the minimum daily wages, by zone, were: Zone A (Baja California, Federal District, and larger cities) $4.12 (46.80 pesos); Zone B (Sonora, Nuevo Leon, Tamaulipas, Veracruz and Jalisco) $3.99 (45.35 pesos); Zone C (all other states) $3.87 (44.05 pesos).
    I just returned home from one of Alcoa’s (BFE) factory areas and I know for a fact that they pay minimum wage plus more depending on skill, work habits and attendance. I also know that the minimum wage today is higher than what I quoted from 2006 but I don’t recall the amt.

  • http://www.freerepublicans.com/ FreeRepublicans.com

    Further research needed for a complete picture:

    1.) What was the average change in hours per week of all hourly workers in the time span?

    2.) What was the average change in hourly wages after accounting for inflation?

    (I have no idea, but these answers may just make your point even stronger.)

  • redwolf

    well,duh! why should big corporations stay in the u.s. when they can go to some god forsaken third world country , pay slave wages,exploit child labor,and have you buy their products at ridiculously high prices?hmmmm?

  • http://sayanythingblog.com robport

    If Edwards is correct, show me the evidence.

    I’ll take your comment about unemployment figures at face value (even though I think it’s irrelevant for the larger picture), so let’s look at it this way.

    America’s population was 262,000,000 in 1994. It’s about 301,000,000 right now. That’s a difference of 39,000,000.

    Since 1994 we’ve added 30,000,000+ jobs to the economy. When you work that out with age demographics (remember that someone born in 1994 would just be 13 today and not yet in the job market, and also remember that of the 262,000,000 in 1994 many have reached retirement age by now) it’s about even.

    NAFTA hasn’t lost us a thing, and has actually made a lot of goods and services in America cheaper.

    Edwards is a rank populist and is either a liar or has no idea what he’s talking about.

  • http://sayanythingblog.com robport

    Edie, I doubt very much that the Mexicans hired in Mexico are making $0.60/hour. I think that’s flat-out hyperbole from someone who is clearly emotionally invested in the issue.

    But I will say that the jobs that were moved down to Mexico probably paid better than the jobs those Mexicans had before, thus improving their standard of living. And the cheaper jeans improved my standard of living, leaving me with more money to spend in other parts of the economy to create another job for you, Edie.

    Robert, I think you’re trying to refute my points through obfuscation. If you’re saying that we’ve lost jobs due to NAFTA, go ahead and quote facts and figures to prove it. But don’t think you’ve made a point by saying because I didn’t turn this blog post into a full-scale economic study I’m not right.

    I am right. This country is better off because of free trade. I’d even go so far as to say that our economy has weather high fuel prices better because of free trade.

    I think I’ll file your rather shallow rebuttal back in the same place where I filed your support for the archaic gold standard.

Create a SAB Readerblog


Recent Comments

Powered by Disqus

Blog Advice and Support
Installs and Upgrades
Theme Modifications
Custom Plugins
Theme Design
Conversions and Relocations
Hacked Site Recovery
Mobile Apps Development