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To: Dog Gone
I've read some on it. On the surface, it sounds like it could benifit the American farmers. But I think ultimatly it will send more jobs out of the country. American workers cannot compete with the wages on the Mexican worker, and South American wages are even lower.
I'm open for discussion on the subject.
I don't think we've given NAFTA enough time to really see it's effect. I don't want to rush into CAFTA.
Why ado you fell CAFTA is a good thing?
14 posted on 05/13/2005 10:33:22 AM PDT by jaydubya2
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To: jaydubya2
American workers cannot compete with the wages on the Mexican worker, and South American wages are even lower.

Correct. Any American /Western industry enjoys remarkable competitive advantages (technology, acess to capital, a stable currency, a stable political system, excellent infrastructure, the rule of law) BUT are always going to get hosed on wages compared with any poorer country that somehow makes the same product cheaper or better.

If an industry is uncompetitive then eventually it must adapt or die. Protecting it with tariffs makes an industry into a form of welfare - the taxpayers are subsidising the industries inability to make a profit.

This is the unpalatable part of free trade: I have to change what I do for a living, or how I do it, in order to compete. I can't just wait for a government hand-out.

But the huge advantage of free trade is how much it increases the wealth of both trade-partners. Suddenly both countries have more goods and/or money, and so can afford to hire people for other projects. Many western countries seem to the casual observer to have massive service industries and no great manufacturing base. This is because they are simply trading for cheap food, cheap furniture, cheap cars etc. If people in (say) Britain had to rely on home-produced goods then the country would be immeasurably poorer, even if we had the factories and farms to produce every item ourselves..

18 posted on 05/13/2005 11:02:02 AM PDT by agere_contra
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