Friday, July 29, 2005

Absurd editorial in the Denver Post supporting CAFTA

Who exactly do they think they are kidding?

"We welcome the removal of trade barriers between the U.S. and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua and hope that increasing trade will bolster fragile Central American democracies and improve the livelihood of impoverished families."

That would be lovely wouldn' it? Raising these poor countries up and out of poverty through free trade. Unfortunately we've already tried this once before with NAFTA and the standard of living in the Mexico has stayed stagnanat and the rela wages have actually fallen. We already know it doesn't work, NAFTA was launched in 1994 with promises of raisng up Mexico's standard of living, you can see for yourself that it hasn't done that and it has at the same time hurt American workers.

"I think it can only be positive that all the trade barriers ... are coming down," said Chuck Berry of the Colorado Association of Commerce and Industry.

Who exactly has been helped by NAFTA Mr. Berry? Mexican Workers? No. US Workers? No. US International Corporations? Yes, they've been able to further exploit our Mexican neighbors.

The Economic Policy Institute has a good piece on the possible effects of CAFTA.


At 9:44 AM, Anonymous J Schuster said...

Yellowdog, I'm not sure that I neccesarily agree with your simlpistic analysis of NAFTA's effects and CAFTA's effects. I am of the belief that we have a vested interest in flushing some money via private veins into the economies of our neighbors to the south. By doing so it opens up the doors for American companies to sell products more openly in central american countries creating some jobs back home. Sure it kills manufacturing jobs at home, but guess what- manufacturing jobs are going to go elsewhere, regardless of whether they go to Central America or China or India or Pakistan or wherever. There is nothing we can do about these manufacturing jobs, so why not try and open up some new markets so as to create some wealth flowing back to the United States. Also, as an added side benefit, there is a chance that this influx of capital to the central american countries might begin to stabalize some of these countries to the south. That in and of itself is a major help to us. The focus of NAFTA wasn't to boost the economy of Mexico, but to stabalize Mexico, which it has done to some extent. Also, the peso has held a whole lot stronger against the dollar than before NAFTA. I'm curious to hear your thoughts.

At 1:16 PM, Blogger YellowDogDem said...

I appreciate your theories but the real world application of NAFTA shows that these high ideals have all fallen flat. NAFTA has not created jobs at home - in fact working families have suffered. NAFTA has not raised the standard of living for average Mexicans - in fact real wages have fallen. NAFTA was supposed to stabilize Mexico and help stem the tide of illegal immigration. NAFTA failed to deliver, it really is pretty simple.

I encourgae you to read the article from the Economic Policy Institute that I have linked to. It shows, in cold hard facts and figures just how NAFTA has failed on every promise proponents made.

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