Sunday, September 22, 2024

Mexico

When President Clinton negotiated NAFTA it allowed US manufacturing jobs to go to Mexico which was just a continuation of the deglobalization of US jobs going to China. It was not a good deal for American factory workers but it was a bonanza for large corporations in particular the auto industry. According to the Economic Policy Institute, these investor protections facilitated the movement of manufacturing plants to Mexico. Fifteen percent of employers in manufacturing, communication, and wholesale/distribution shut down or relocated plants due to union organizing drives since NAFTA's implementation. Recall how Ross Perot described NAFTA as a giant sucking sound referring to the manufacturing jobs going to Mexico. Trump replaced NAFTA with the United States Mexico Canada Agreement (USMCA) and this brought manufacturing jobs back home. This set the stage for the reshoring of jobs to America. The US is now in a position to rebuild its industrial base while Mexico takes over the less skilled jobs to help North America to lead the world into the de globalized era. US companies will select the jobs needing the highest skills to remain in the US and then ship the lesser skilled jobs to Mexico. This is because the US would have a shortage of workers but Mexico can take up the slack. This was one more way the Trump early on recognized the problems with the global economy.

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